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The production function of a firm is Y = x11/2x21/2 . Suppose in the short run factor 2 is fixed at 400 units. The cost of factor 1 is $2 and the cost of factor 2 is $1. The price of the output is $6 each. What's the maximum profit that the firm can get in the short run?
Have you ever had to deliver difficult feedback to a friend, family member or coworker?
Acme Tobacco is currently selling 5,000 pounds of pipe tobacco per year. Due to competitive pressures, the average price of a pipe declines from $15 to $12. As a result, the demand for Acme pipe tobacco increases to 6,000 pounds per year. What is the..
Explain what costs must be covered in the short run for the firm to remain open.
Elucidate what happens to the official measure of GDP in each of the following situations.
The fund pays 9% annual interest. What is the fund's future worth when Patrick is 18?
What are governments goals and objectives? How does the government intervene in the free market?
Julio receives utility from consuming food (F) and clothing (C) as given by the utility function U(F,C)=FC. In addition, the price of food is $2 per unit, the price of clothing is $10 per unit, and julio's weekly income is $50. What is julio's margin..
A small used delivery van can be purchased for $18,000. At the end of its useful life (eight years), the van can be sold for $2,500. Determine the PW of the depreciation schedule based on 10% interest using: Straight-line depreciation, Double declini..
Illustrate your solution graphically: draw the relevant isocost line and sketch the relevant isoquant.
All economic systems (capitalist, communist, or any other) face similar economic problems. Which of the following questions would NOT be faced by all economies?
The choice between specialized and broad task assignments depends on:
Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of entertainment—in particular, how much it costs to go see a movie ins..
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