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1. Why is a piece of machinery(capital) usually considered a fixed input and Labor usually considered a variable input?
2. What determines if you are operating in the short run vs. the longrun?
A perfectly competitive firm’s profit-maximizing price is $15. At MC = MR, the output is 100 units. At this level of production, average total costs are $12. The firm’s economic profits are
Define real and nominal GDP. Which form of GDP (real or nominal) do you believe should be utilized when assessing the performance of the US economy over time? Why?
The average avoidable cost for a fringe firm is AAC(q) = 20/q + 5q . The marginal cost function for a fringe firm is MC = 10q . There are 10 fringe firms. The marginal cost of the dominant firm is 2 and the demand function is Q = 100 − P. What is the..
Explain the concept of mark-to-funding accounting rule, proposed by Brunnermeier Et.al.(2009) ? How can this rule help reduce the problem caused by the mark-to-market rule ?
We are concerned with the water quality in the Mississippi River. There are 4 groups of people who use the river: environmentalists, fishermen, sightseers, and wastewater plant executives. What is the efficient level of water quality?
If the labor force of 155 million people is growing by 1.2 percent per year, how many new jobs have to be created each month to keep unemployment from increasing? Instructions: Enter your response as a whole number. New jobs per month:
What are the major federal laws and subsequent amendments underpin U.S. environmental protection. Identify these laws. The value of a home depends in part on how attractive other homes and yards in the neighbourhood are. How do local zoning ordinance..
demonstrate the maximum amount of corn which can be grown using the existing production technology. For the next several troubles, ignore the vertical axis.
Suppose that the demand for federal funds curve is such that the quantity of funds demanded changes by $160 billion for each 1 percent change in the federal funds interest rate. Also, assume that the current federal funds rate is at the 3 percent rat..
An eccentric scientist invents a very useful gadget and makes huge profits. Unfortunately, he is so preoccupied with his newly found fame and fortune that he forgot to secure a patent for his special product. What can be expected to happen to the sup..
We can read about productivity and study the graphic figures that are in textbook and be able to understand the relationships of variable cost, fixed costs and average total cost and find the most optimal quantity of production. If a firm buys roboti..
Currently, the expectation is that the Federal Reserve will try to increase interest rates sometime later this year, while the European Central Bank will try to maintain low interest rates. What is the corresponding expectation of the future trajecto..
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