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You have been hired to replace the manager of a firm that used only two inputs, capital and labor, to produce output. The firm can hire as much labor as it wants at a wage of $5 per hour and can rent as much capital as it wants at a price of $50 per hour. After you look at the company books, you learn that the company has been using capital and labor in amounts that imply a marginal product of labor of 50 and a marginal product of capital of 100. Do you know why the firm hired you? Explain.
Suppose the market for good X has a four-firm concentration ratio of 0.50. Furthermore, assume that total sales in the industry are $1.2 million. Based on this information, we know that sales for the largest four firms in the industry equal (in aggre..
What problems does the freely-elected government face in protecting Indonesia's environmental habitats?
1. Explain use of production possibilities frontier to analyze opportunity costs and trade- offs.
A description of the impact of import quotas on prices, quantities supplied, and quantities demanded (part A question 1 of attachment)
Transcendent Technologies is deciding between developing complicated, thought-activated software, or simple, voice-activated software. The voice-activated
Define Nash equilibrium. What is {are} the Nash equilibriumls} in this game. Explain.
Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is
Which of the following statements best captures the so-called “shut down rule” for a monopolist that is able to engage in perfect price discrimination?
Suppose the legislature enacts minimum wage legislation in order to provide workers with a "living wage.
How does the use of collateral and net worth help reduce the problem of adverse selection?
Evaluate why policymakers face a short-run trade-off between inflation and unemployment and why the unemployment's trade-off disappears in the long run
Was your contract with Bobby a unilateral or bilateral contract; if unilateral, at what time did Bobby substantially undertake performance?
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