Macro islands increased investment

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Reference no: EM137176

Q1. Assume you are to specify a short-run total variable cost function for a nursing home. Elucidate the variables you would include in the function. Illustrate the expected relation between a change in each of these variables and short-run total variable costs?

Q2. While businesses in the Macro Islands increased investment by $20 million to magnetize tourists, aggregate demand increased by $50 million. What is the MPC in the Macro Islands? Explain how you arrived at your answer.

Q3. Construction of a hydroelectric dam will effect in the permanent closure of a recreational park. The park has brought $4 million in revenues more than in last two years. Illustrate the expected total monetary loss under 4% of annual interest rate if this park is permanently closed this year?

Reference no: EM137176

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