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Suppose a firm has the production function Q = K0.4L0.6. The wage rate is given by w and the rental rate of capital is given by r. Find the firm’s demand functions for K and L. Suppose the firm is currently producing Q = 100 units of output. Suppose it receives an order for 150 units of output. What will it do?
If the spot price of the British pound is $2.20, the risk-free rate on 1-year government bonds is 3% in the US and 6% in the UK, What is the one-year-forward price of the pound?
Consider if the government instituted a 10 percent income tax surcharge. In terms of the AS/AD model, this change should have
If the farmer rented her land from a landowner, would she have the same incentives to control soil erosion. Illustrate would the landowner have an incentive to control erosion.
Discuss the pros and cons of the two “advanced” forms of estimating energy demand. What do they excel at and where are they lacking? How might policy changes be built into the models? Discuss the cost features of renewable energies in the supply elec..
A company in the process industry produces a chemical compound that is sold to manufacturers for use in the production of certain plastic products. The plant that produces the compound employs approximately 300 people. Develop a list of six different..
According to the lectures in class, although consumption spending is about 70% of the total spending in the US economy (C=70%, I=15%, G=15%) its effect is stronger than 70% on the economy why?
Assumes the perfectly competitive firm is in long-run equilibrium also there is an rise in Demand
Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers.
Consider the following statements on the basis of positive economic analysis that assumes ceteris paribus. Liston other thing that might change and thus alter the outcome stated.
Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?
Suppose the Bank of Japan (BOJ) and the Federal Reserve Bank decide to coordinate policy in an effort to lower the dollar exchange rate (that is, to reduce the number of Japanese yen needed to purchase one dollar). The policy coordination needed to r..
Which of the following is TRUE of the European Union's cap-and-trade program?
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