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A U.S. Chemical firm has a production function of q= 10L^(.32) K ^ .56. It faces factor prices of w= 10 and r = 20. What are its short run marginal and average variable cost curves?
Assume the economy starts out at point A. After that, the public anticipates that the Fed will use expansionary monetary strategy to shift the AD curve from AD1 to AD2.
q1. during the late 1980s wool prices increased considerably due in part to increased demand by china and the former
Zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $180,000 (time zero dollars) per year. It is a policy of the company that the annual revenues will be increased each year to keep pace with th..
What will happen to the equilibrium price and quantity of new cars if, simultaneously, the price of automobile insurance (a complement) increases and the price of steel decreases
Suppose that you buy a bond for $100 that pays four percent interest per year. Explain how much money will you have earned when the bond reaches maturity in five years.
Using the concepts of marginal utility and marginal cost, discuss the nature of the inefficiency in each of the following cases: an arrangement that offers relatively little coffee and much tea to people who prefer coffee and does the reverse for tea..
Reverse Innovation is the strategy of innovating in emerging (or developing) markets and then selling these innovations in developed markets. Companies are developing products in emerging countries like China and India for global distribution. How wi..
Consider now an economy where you need to search for a job. Let b be the fraction of people that do not have a job and are searching for one. Here active population and working age population do not coincide. Let s be the job separation. Write the eq..
If a monopolistically competitive firm maximizes profit by producing 600 units per hour, it must be true that at 600 units per hour:
q1. use the suitable formulas to create 2 new columns for total profit as well as profit margin correspondingly.
What are the major causes of currency crises, and how can countries prevent these types of crises? What should be done if a crisis occurs? Use the interest rate parity model of exchange rate determination to explain what policies should be followed d..
He projects that his costs also revenue will be similar this year if he continues farming. Illustrate what is Bowen's accounting profit from farming an additional year.
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