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A firm can hire labor as much as it wants at a price of $10 per hour and rent as much capital as it wants at a price of $50 per hour. Presently, the marginal product of labor is 40 and the marginal product of capital is 100. Is the present allocation of inputs optimal? What should the firm do
Suppose that Charles, an economist from an AM talk radio program, and Dina, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
At the end of each quarter, the manager receives a bonus equal to a percentage of the sales revenue generated.
Throughout the company’s franchises, the probability is 0.60 that a meal lwill be served with in 45 seconds. What is the expected number of coupons a counter employee will receive when serving the regional manager?
Assume a closed economy described by the following equations: C = 300 + 0.6(Y-T) ; I = 500 - 40R; G = 200; T = 200; M = 2800; (M/P)d = 4Y - 100R; SRAS: P = 1; LRAS: Y=1000 e) Find short run equilibrium level of output, prices, and real interest rate.
What is the formula for Marginal Costs? What is the diagrammatical relationship of Marginal cost to Average Variable Costs and Average Total Costs?
How can we measure quality health care objectively? What parameters should we measure?
A) Why is it compelling? Which of the concepts does it exemplify? B) In general, how have these concepts been challenged by the advent of immediacy in news release?
Suppose that price of capital is $1 and price of labor is $2 and total outlay is $16. Write the equation for the iso-cost line and plot it on the same graph with the iso-quants.
Suppose there are two types of Scottish beer, Skullsplitter and Dragonhead Stout. Draw indifference curves for the following consumers (put Skullsplitter on the x-axis andDragonhead Stout on the y-axis). a. Angus likes variety and prefers to drink..
How should the federal reserve react if they desire to bring inflation down to 3% Wren will they achieve that goal? (Hint: maintain plenty of decimal places.)
Explain how the circular flow diagram relates to the current economic situation.
There is a duopoly of beer producers, Biller and Moors, who produce identical hoppy ales, and each have marginal costs of $100 per keg. Assume there are no fixed costs. What are the best response curves in Cournot Oligopoly for these two producers? W..
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