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A competitive firm uses two variable factors to produce its output, with the production function y = min {x1/2, x2}. The price of factor 1 is $4 and the price of factor 2 is $5. Due to a lack of warehouse space, the company cannot use more than 20 units of x1. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the lowest price that would make a firm willing to produce a positive amount?
Consider the decision of a household to have additional children. As a result of the substitution effect(s) of a wage increase, economic theory predicts that: In the household production model, the income effect associated with a wage decrease will:
Elucidate what do the opponents of globalization criticize. With regard to consumerism, immigration, and nutrition, where do you find their critiques compelling.
Are there circumstances in which it might be possible that deficits could increase productivity and long-run growth?
Last month Jim purchased $11,000 of US bonds (face value). These bonds have a 26 maturity period, and they pay 1 percent interest every 3 months (i.e. the APR is 4%, and Jim receives a check for $110 every three months). what is the current value of ..
Suppose you are a thirty-year-old worker choosing between an IRA, a ROTH IRA and a regular brokerage account. Your marginal federal tax rate is 15% now and 15% in retirement. Compare after-tax returns on all three forms of investment. Rank the invest..
Calculate the elasticity for each variable. On this basis, discuss the relative impact that each variable has on the demand. Illustrate what implications do these results have for the firm's marketing and pricing policies.
Illustrate what happens when a cheaper product is offered due to Impact of Government Imposed Price Ceiling that is below the equilibrium price.
Many factors affect the demand for a product, which is a concern for management and the decision-making process. To correctly assess the demand for their products, managers must determine the effect of all relevant variables. Discuss how these variab..
Describe who else you will talk to in order to set the sales assumption forecast. How will you document this? How is the sales budget used to build the other budgets? Who is responsible and what standards for negotiations should be set during budge..
What is Anarchy when referring to International Relations? Why is the concept of Anarchy important for understanding the difficulties for international negotiations on environmental issues?
Search Engines today use Search Engine Optimization and Pay per click advertising. Explain the positives and the negatives for using each Search engine optimization or pay per clicking? Explain which one that you would choose or would you use both in..
Illustrate what is the short-run supply curve for each firm in the company. What is the short-run supply curve for the industry as a whole,Qs.
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