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Consider the production function, Q = 12L.8K.2, where Q is output, L is labor input, and K represents capital input. 1. Using logarithmic function, transform this multiplicative (nonlinear) function into a linear function. 2. Find the Q when L= 20 and K = 6
The university bookstores received 4 million euros from students in exchange for the books. Illustrate what is the total contribution to GDP from the above events.
What is an inflationary gap? What are the implications of this gap in terms of unemployment, real output, and the price level
Consider a consumer who has utility function u(x, y) = min{2x, 3y} where x, y are amounts of goods X, Y consumed respectively. If px = 1, py = 1, consumer has total budget w = 10. What’s the optimal consumption bundle of this consumer? If there is an..
From a social perspective, is the outcome of a Hoteling model without price competition efficient?
Acme does not require students to submit a transcript with their applications, the hiring officer believes that high GPAs signal a willingness to work hard.
Suppose the city of Washington is committed to raising $250 million for a new arena. The mayor suggests putting a tax on taxi rides since out-of-towners disproportionately use taxis. Evaluate the economics of this policy decision. Carefully explain w..
Suppose the price of coffee beans increases by $0.20 per pound. What is the effect of this raw material price increase on the demand for roasted coffee? If one pound produces 50 cups of coffee, would the price of a cup of coffee rise by $0.01? Explai..
If the law of demand is true, then why are movie theaters usually full when the ticket price is highest and usually close to empty when the ticket price.
i. Compute the B E P in units and in shs. ii. Assume that the company intends to make a profit before tax of 20% of sales, determine the number of units that must be sold.
Determine whether the sample is likely to be representative of the population.
When a product has a relatively inelastic demand, a 10% rise in price would cause a decline in quantity demanded that is smaller in absolute value: for example, 8%. If the demand for a product were perfectly inelastic, a rise in price would have no e..
Where necessary you will need to support the tax return using spread sheets, databases and internet information. In completing this activity you must show that you can apply statute, regulation and precedent to a client's circumstances, develop op..
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