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Assume that for the last worker hired MPL=4, MR=2, and W=4, and if one more worker is hired MPL=3, MR=2, and W=4. Given this information, the firm
(a) should decrease employment
(b) should increase employment
(c) should leave employment unchanged
(d) without information on the marginal revenue product, it is impossible to say what the firm should do.
During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence. What components of aggregate demand were aff..
Gatekeeper models of MCOs require patients to see a primary care doctor before going to see a specialist. What two key economic principles would be involved in a successful gatekeeper program?
If US investors decide that investment opportunities in African countries have improved. What happens to US net capital outflow? What hap pens to US net capital outflow? What happens to the US real interest rate?
Elle's prefrences over apples(A) and bananas(B) are represented by the Cobb-Douglas utility function; U(A,B) = AB. Write down the optimization problem. What is the objective function? What are the choice variables? What is the constraint? What are th..
As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe.
If the inflation free rate is an annual 13% and inflation is an annual 4%, what is the annual market interest rate? If you anticipate an annual inflation rate of 4.0% in the current economy and can make an investment that is expected to appreciate at..
You have decided that in order to have a comfortable retirement you will need to replace $65,000in income each year in retirement. Assuming you will need 20 years of retirement income and an inflation rate of 3.5%, how much will you need to have save..
What are the monopoly output and profits? Why are monopoly profits and collusive profits not the same? Is the collusive agreement in (b) a Nash equilibrium?
At the time, there were 180 million automobiles and 250 million people in the United States. Each vehicle was driven about 15,000 miles each year. What is the cost of saving each life?
Between 2000 and 2003, the rate of change in price level in Japan was generally between –0.5 percent and –1.0 percent; therefore, the nation experienced a deflation. Research deflation in Japan and explain what happened to the equilibrium price level..
The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that the company’s many divisions will remain..
q.for each level of output calculate the variable cost vc. for each level of output except zero output calculate the
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