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Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 units of output, the marginal product of the 100th unit of labor is 10 units of output and the per unit prices of capital and labor are $20 and $10, respectively. In this case, in order to minimize its costs of production the firm should:
hire more capital and less labor.
hire more labor and less capital.
hire less capital and less labor.
hire more capital and more labor.
Katie's project has a five-year term, a first cost, no salvage value, and annual savings of $20 000 per year. After doing present worth and annual worth calculations with a 15% interest rate, Katie notices that the calculated annual worth for the pro..
What is a standardized budget deficit/surplus? How is it different from actual budget deficit/surplus? How is budget deficit/surplus related to public debt? What is the approximate percentage of US public debt that is owned by foreigners? What is the..
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Elucidate how these problems are int..
By Elucidate how much also in Illustrate what direction does GDP change as a result of his efforts.
Bart Wurst runs the only hot-dog stand in a large park in a large boring town. On Sunday’s people in this town all sit in the park and sunbathe. For any t between 0 and 30, the number of people who are sitting within t minutes of Bart’s stand is 15t ..
Sam Musso is planning to retire in 20 years. He can deposit money at 8% compounded quarterly. What deposit must he make at the end of each quarter until he retires so that he can make a withdrawal of $45,000 semiannually over five years after his ret..
For each scenario, calculate equilibrium price and quantity, total consumer surplus and total producer surplus.
Which of the following statements represent a use of money that is consistent with its definition?
When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a _____________________ .
In 1999, the Canadian economy was at full employment. Real GDP was $886 billion, the nominal interest rate was around 6 percent per year, the inflation rate was 2 percent a year, the price level was 110, and the velocity of circulation was constant a..
Outline the First and Second Welfare Theorems and their implications for the role of government. How can we use them to analyse the trade-off (if one exists) between efficiency and equity?
Identify each of the following acts as representing either saving or investment.
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