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Assignment 1: Article Analysis
Suppose the supply of labor is given by LS = 10w , where LS is the quantity of in millions of persons employed each year, and w is the wage rate in dollars per hour. The demand for labor is given by LD = 80 - 10w. What will be the free-market wage r..
Illustrate what happens to output and the optimal scale of a firm, and price if there is a free entry into the market.
Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..
What movements in in supply and demand would be consistent with the increase in Banana prices ( prices increased due to heavy rains washing out banana crops for that year)? Discuss the factors and mechanisms that have causes these patterns of price c..
What types of policies might be proposed by a government if a monopoly power (Markets may fail to control the abuses of monopoly power) occurs? A. why would these proposals be effective? B. Are there any negative side effects to the proposed policies..
As additional units are produced, the marginal revenue product falls for all firms because marginal product decreases. For firms operating in industries that are not perfectly competitive, marginal revenue product also falls because
q1. the government is involved in providing many goods and services. for each of the goods or services listed determine
Upon his employment at the age of 22, Robert began to make a series of equal year –end deposits of $1100 to his retirement fund. After working for 5 years, he is now able to increase his saving. He plans to increase his annual deposits to $2200, star..
A surplus exists in a market if
A forecasted increase in metal prices has encouraged the Delta Resource Company to consider the expansion of the capacity in one of its open pit mine operations in Northern Ontario. Existing Capacity: Positive after tax annual cash flows of $12.5 mil..
The following equations represent the demand and supply functions associated with a given passenger railway route for a particular season: Demand function: V =400 – 12P Supply function: P = 1.5 - 0.03V + 0.006V2 where V is the daily passenger trips a..
rises over longer periods. Another research paper verifies these results, but shows how the liquidity effect has diminished over time.
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