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Q1. Assume that the production function for a commodity is given by Q = 10√LK, where Q is the quantity of o/p, the quantity of labor is L and the quantity of capital is K.
(a) Indicate whether this production function exhibits constant, increasing, or decreasing returns to scale.
(b) Does the production function exhibit withdrawing returns? If so then explain when does the law of diminishing returns begin to activate? Could we ever get negative returns?
Q2. If an input necessary for production is in limited provide so that an expansion of the industry raises costs for all existing firms in market afterward long-run market supply curve for a good could be.
Are the assumptions the same as under a simple linear regression. What does TSLS imply about the data if a strong F is found.
Carefully explain how these two deficits are related economically so that changes in one are reflected in changes in the other.
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Illustrate now have to lend out how much does this bank if it decides to hold only required reserves.
Demonstrate by example about production which exhibits constant returns to scale.
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ABC Company is considering a private placement of equity with XYZ Insurance Company.
Explicate which among the policies is most effective and least effective for this nation.
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
The university is seeking a grant to cover capital costs. How big of a grant would make this project worthwhile (to the university).
Calculate the new cost earned by sellers, the cost paid by clients, as well as the equilibrium quantity sold in the market.
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