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Define constant returns to scale, and explain how this property of a production function differs from decreas ing/increasing returns to scale. Which of the three cases does the Cobb-Douglas function exhibit? Which of these do we think matches the real macroeconomy best?
Imagine that there are two monopolies: upstream and downstream. The upstream monopoly produces units of wood, x, that it sells for $k each to the downstream monopoly. Its cost of making wood is C(x) = 20x.
Suppose that the matching function is given by: M = em(Q, A) = eQ^(0.7)A^(0.3) Express pc and pf as functions of e and labor market tightness j. Suppose that z = 1, b = 0.4, e = 0.9 and k = 0.24. Suppose that w = 0.75 Find the unemployment rate in th..
Suppose the marginal propensity to consume equals 0.8 (i.e., c1 = 0.8). Given this information, which of the following events will cause
1. Suppose the income in thousands of dollars for 40 employees in an Accounting firm is presented below.Refer to tha data set below and answer the question that
Interest payments on municipal bonds are exempt from income taxes, while interest payments on Treasury bonds are subject to income taxes.
Peter is studying for an exam. There are two "inputs" to the grade he receives: hours per week spent working on problem sets
Milton Freedman, the champion of the Monetarists School of Economics, basically proved that it was monetary theory, changes in the money supply, that was the only way to affect the economy. Pump priming was false.
Suppose that the current (first) generation consists of 1 million people, half of whom are women. If the total fertility rate is 1.3 and the only way people die is of old age, how big will the fourth-generation (the great-grandchildren) be? How much ..
What do you understand by the law of diminishing returns? If diminishing returns have set in then what do you think is happening to the short run costs? Why
An a (3) x B (4) factorial design with 6 subjects in each group is analyzed, what are the degrees of freedom for main effect A,
What is the relation between Nash equilibrium and ESS?
A capitalist owns a machine that will last for two more years. The good the machine helps produce will yield revenue of $50.000 and $40,000 with costs of $35,00
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