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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.
Analyze the various means of taxation available to finance the government and evaluate the alternatives to taxes. Identify if there is an economic limit to the extent to which the government can increase taxes. Justify your response.
Illustrate what are characteristics of large firms conducting both B2B and B2C transactions that require more robust and capable electronic commerce systems.
Suppose without trade, country A produces and consumes 100 units of widgets at a price of $10 each. Illustrate what is the total gain or loss from trade for country A.
Calculate the average cycle stock for this item using the order quantity in part a. c. Assuming there are 12 periods per year, calculate total cost per year.
Explain the implications of those classifications on tax revenue collections when the per-unit tax increases as opposed to decreases.
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suppose that new producers enter the market and the supply increases to: Qs = -500 + 10P. What is the new equilibrium price and output level? (g.) Show these changes on the graph
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What happens to the stock of money if the Fed lowers reserve requirements by changing the reserve ratio to 10 percent?
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