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You were recently hired to replace the manager of the Roller Division at a major conveyor-manufacturing firm, despite the manager's strong external sales record. Roller manufacturing is relatively simple, requiring only labor and a machine that cuts and crimps rollers. As you begin reviewing the company's production information, you learn that labor is paid $11 per hour and the last worker hired produced 105 rollers per hour. The company rents roller cutters and crimping machines for $16 per hour, and the marginal product of capital is 120 rollers per hour.
Should you change the mix of capital and labor, and if so, how should it change?
You should increase capital and decrease labor. You should increase labor and decrease capital. You should not change the mix of capital and labor.
I know the answer is Increase labor and decrease capital. Can you explain Why?
Illustrate what price should the theater charge for a ticket if it wants to maximize profit. how big will its profit be. What price would you like to charge.
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Using the aggregate demand and supply model, draw an economy in a boom with equilibrium national income above full employment GDP.
Illustrate what is the estimated size of the union salary advantage. How might this advantage diminish the efficiency with which labor resources are allocated.
Assume Helen's income increased from $30,000 per year to $45,000 per year and Helen\'s crab meat consumption went from 25 pounds per year to 30 pounds per year.
Calculate the growth rate of real GDP for each year from 1994 to 1997 and calculate the average annual growth rate of real GDP for the period from 1994 to 1997.
In order to maximize profits, monopolies produce where: MARGINAL REVENUE = MARGINAL COST
Describe briefly why time lags in discresionary fiscal policy can adversely affect the efforts.
Describe the business research and its purpose. What did the researchers conclude as a result of their research.
Calculate GDP using each of the three approachesb. Calculate the current account surplus and GNP. If the coal producer is instead owned by foreigners, what is GNP?
Illustrate what effect would a period of rapid inflation likely have on the role of money.
You do not like this as it will be possible for the large money center banks in Washington, Las Vegas to open branches in your banks geographic market area.
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