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Consider a firm where production depends on two inputs—labor and capital. The firm starts using a production process that causes it to use much less labor as a fraction of its costs. How do you predict that this change will affect the firm’s elasticity of labor demand?
What assumption along with diminishing marginal product implies diminishing marginal rate of technical substitution?
Imagine that you are a lobbyist for timber, an established industry suffering from low-priced foreign competition, and you are trying to get Congress to pass trade restrictions. Which two or three of the five arguments do you think would be most pers..
List three examples of government price controls other than those mentioned in the chapter. For each example, explain why government enacts the price control.
Draw an indifference map for a typical person’s preferences over five-dollar bills and tendollar bills using the vertical axis for five-dollar bills and the horizontal axis for ten-dollar bills. What is the marginal rate of substitution (MRS)?
You have studied the legislative branch of government and the wide range of powers held by the House of Representatives and the Senate. List five powers or duties of one or both houses of Congress and discuss each of the five, in a few descriptive se..
Does disposable income measure the before-tax income received by resource suppliers
Explain the relevant importance of debt vs. equity financing and the reasons for the mass-media preoccupation with equity markets. Explain the relevant importance of marketable securities vs. non-marketable securities. Explain the relative importance..
question 1explain and illustrate with diagrams the differences between diminishing marginal returns and decreasing
What factors will contribute to the riskiness of these bonds.
What would be the percentage change in apple unit sales if the price of apples decreased by 10%? What would be the percentage change in apple unit sales if the price of pears increased by 5%? What would be the percentage change in apple unit sales if..
You are manager of BlackSpot Computers, which competed directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses' prospective, the two products are indistinguishable.
You deposit $10000 into an account paying 8% interest compounded quarterly. You want to make withdrawals of $1300 each year for the next 15 years. If you were to make two equal deposits, one in year 5, the other in year 10, how much would they need t..
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