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Q = 42L + 18L2 -2L3 WHERE Q= TP (TOTAL PRODUCT) or quantity of output in units and L(labor) in units
Find the following: First solve this problem using an Excel spreadsheet approach and then do the problem using the optimization procedure; compare the answers for the two methods.
What amount of labor in units should be used to get maximum output?
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
According to the quantity theory of money, what is the effect of increase in quantity of money?
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
Find the velocity given that the market is in equilibrium. MD1 is the relevant curve and it is given that the real GDP is 30,000.
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
Explain International Monetary System
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four possible $1 price changes.
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
Describe what effect an expansionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
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