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Boss Fuzzhead is an engineer by training and says “I know that we can substitute capital for unskilled labor in the production process that our company uses and projections are that capital costs are declining, so those unskilled folks better just be happy they have jobs and not give me any trouble.” Sally Ecogeek, the company economist, tells him that he won’t substitute if the cost of capital goes down because she has estimated that the cross-price elasticity of unskilled labor employment with respect to changes in the price of capital is negative. How do you explain this apparent contradiction to Boss and Sally?
Semiconductor manufacturing involves taking a flat disc of silicon, called a wafer, and depositing many layers of material on top of it. Each layer has a pattern on it that, upon completion, defines the electrical circuits of the finished microproces..
Other counters that we are running out of cheap energy. Explain which person is correct also why.
Why anyone would pay a positive price for a CBOT or NYSE seat and what this price represents. Second, explain why the seat values have changed so much in recent months.
Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: Engineering advances have made it less costly to create a safe working environment.
Find the optimal quantity of labor supplied by a consumer who has a utility function for leisure (l) and “goods” (y) of U(l,y)=ln(l)+ln(y) , no non-labor income, a wage of 10, and 2000 hours of time.
Provided Ajax's pricing strategy, illustrate what is marginal revenue function for Ajax.Compute profit-maximizing level of output for Ajax.
Describe the demand and marginal revenue curves faced by a firm in a purely competitive market. Are they different from those faced by a firm in oligopolistic competition?
What was your profit on 1 Short Call option (100 shares) with a $70/share strike price and a $4/share premium when the price at maturity was $82? How much profit did you make per share if you SELL SHORT at $38 and BUY TO COVER at $29. Your premium fe..
helping him to dig bait for fishing, and he also purchased five of John's mature banana trees for 30 clamshells each. What is the GDP of George and John's island in terms of clamshells
What happens to the supply curve for dollars in the currency market under the following conditions?
Explain the difference between a movement along a supply curve predicted by the Law of Supply and a shift of the whole supply curve or short termed as a shift or change of supply.
Distinguish between liberal economics and conservative economics. Why is macroeconomics an inherently political subject? Summarize the problems that can be created by rapid inflation. How can inflation become self-perpetuating?
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