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1. Suppose that a rm has the production function given by f(x1,x2)=4SQRT(x1*x2) Let w1 = $64 and w2 = $1. What is the total cost of producing 20 units of output in the long-run?
2. Consider the same firm as in question 1, who is facing the same input prices w1 and w2 as above. Suppose that we are now in the short-run and the firm has to use-x2 = 4. (x2 bar) What is the short-run cost of producing 72 units of output?
q.at a recent board meeting ceo and president got into a heated argument about whether to shut down the firms plant in
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Suppose as in the federal income tax code for the United States, that the representative consumer faces a wage income tax with a standard deduction. That is, the representative consumer pays no tax on wage income for the first x units of real wage in..
Which of the following is most likely to cause variation in American household spending patterns?
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Suppose that you desire to get a lump sum payment of 100,000 two years from now. Rounded to full dollars, how many current dollars will you have to invest today at a 10 percent interest to accomplish your goal?
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