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The short-run production function of a profit maximizer firm is given by f(L) = 6L^2/3 , where L is the amount of labor it uses. The cost per unit of labor is w = 6 and the price per unit of output is p = 3. (i) How many units of labor will the firm hire? (ii) How much output will the firm produce? (iii) If the firm has no other costs, how much will its total profits be?
Compare the ranking of U.S. GDP (purchasing power parity) to that of other countries by visiting the CIA’s World Factbook. After reading the article U.S.A comes up a bit short in global Better Life Index and comparing the relative ranking of U.S. GDP..
Bob borrows $52000 from a local bank at an APR of 7.2% compounded monthly. His monthly payments are $52000(A/P, 0.6%, 54) = $1128 for a 54 month loan. If Jim makes an extra payment on the first month of each year, his repayment duration for the loan ..
The market value of a bond will always approach its par value as its maturity date approaches, provided the bond's required return remains constant.
According to tournament theory:
What types of economic evaluations should Shadyville use to rationalize the decision between the implementation of Contingency Plan 1 and Contingency Plan 2? Why?
Consider a labor market where the current equilibrium wage rate (W) is S5 and there are 50,000 individuals employed. Assume that the elasticity of demand for labor (ED) is equal to -0.2 and that the elasticity of supply (Es) is equal to 0.1. Now, if ..
Set all variables to their baseline values. Elucidate how much money do consumers want to spend on spaghetti when the price.
Suppose that in country A the “bottom” 40% of the population receives 10% of the country’s income. The “top” 60% receives the remaining 90% of the country’s income. What is the Gini index in country A? Now suppose that in country B the bottom 20% of ..
How much profit does each firm make? Suppose Firm 2 produced 10 units of output. How much output should Firm 1 produce in order to maximize profit?
Suppose a country can produce a maximum of 20,000 jumbo airliners or 2,000 aircraft carriers. What is the opportunity cost of an aircraft carrier? If another country offers to trade six planes for one aircraft carrier, should the offer be accepted?
In the movie Princess Bride, the hero disguised as the pirate Westley is engaged in a game of wits with the villain Vizzini. Westley puts poison in either his own glass of wine or in Vizzini's glass. Construct the payoff matrix for this game. Assume ..
Dispute Resolution Process- In this essay, you will describe the ADR process. Choose two ADR methods and explain how they work and why the methods might be an excellent alternative to the traditional court process.
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