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1. Suppose this firm is using capital and labour such that the MP Subscript Upper K is equal to 90 and the MP Subscript Upper L is equal to 180. If the prices per unit of capital and labour are ?$5 and ?$30, respectively, this firm _____(is not minimizing, is minimizing) its costs. The following substitution should be? made ____(no substitution is required, use more L and less K, use more K and less L)
Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $40,000. What is the internal rate of return of this investment? What is the decision rule for judging the attrac..
In January 2014 the price of a 2014 Buick was $20,000 and 50,000 units were sold. At October 2014, the price of a 2014 Buick dropped to $18,000 and 60,000 units were sold. Identify what has happened in the market for Buicks in the context of demand.
If the inverse demand function is P=175-3Q, where Q is the Quantity, P is the market price, and suppose the cost function is , i=1,2. Find: Cournot quantity, price, consumer surplus, and each firm`s profit( Hint: two firms are operating in this marke..
Andy purchases only two goods, apples (q1) and kumquats (q2). He has an income of $40 and can buy apples at $2 per pound and kumquats at $4 per pound. His utility function is U(q1,q2)=3(q1)+ 5(q2). What is his marginal utility for apples and what is ..
Econ 3305 - Is the publishing house making the optimal input choice? Why or why not? If not, how should the manager of Largo Publishing House adjust input usage and What is average variable cost?
Conduct an online search for “green awards” to learn about the various awards programs recognizing environmental consciousness and sustainable practices. Select one that recognized a business for a sustainable marketing practice and develop a brief p..
Amanda and Blake have found a house, which owing to a depressed real estate market costs only $201500. They will put $22000 down and finance the remainder with a 30-year mortgage loan from Bank of America at 4.65% (compounded monthly).
If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd))
Explain how GDP is measured in your country. Provide real life examples - examine the position of protectionists. Explain whether you support their argument
Ron Hall is a customer service representative responsible for selling time-shares to a new family resort on the Orlando Florida Universal Studios property. Assume that Ron’s buyer is a married father of two children, an executive at Proctor and Gambl..
Assume the price of capital doubles and, as a result, firms make no change in the relative quantities of capital and labor they employ. This implies that:
Two firms, A and B, engage in Bertrand price competition in a market with inverse demand given by P = 12 - Q. Firm A has a higher marginal cost: cA > cB . Whenever a firm undercuts the rival’s price, it has all the market. If a firm charges the same ..
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