Use comparative static analysis

Assignment Help Business Economics

Reference no: EM131391851

Suppose the firm's profit maximization problem is to choose the labor input N so at to maximize: π = zF(K,N) – wN, where the firm's production technology is given by Y = zF(K, N) = zK^α*N*(1-α) , and 0 < α < 1. Use comparative static analysis (and implicit differentiation) to generate the expression and appropriate sign of: dN/dz.

Reference no: EM131391851

Questions Cloud

Study of capitalism : Robert Heilbroner argues that economics has lost its way because economists have become preoccupied with economics as science rather than seeing economics as the study of capitalism. Explain what he means by this. Should one agree or disagree? Provid..

What are the outstanding faults of the economic system : What are the outstanding faults of the economic system according to Keynes? What is the social philosophy implied by the General Theory? What gave The General Theory a revolutionary quality, and how was it (mis)interpreted, according to Hyman Minksy?..

Differences in institutional economics-behavioral economics : Both Thorstein Veblen on the one hand and Daniel Kahneman and Amos Tversky on the other challenged standard neoclassical notions of rationality. Explain the similarities and differences between institutional economics(Veblen) and Behavioral Economics..

Market for automobile insurance-asymmetric information : A perfectly competitive firm is producing 75 units of output. the market price is $7 and the firm's marginal cost is $8. the firm should: In an asymmetric market for used card, which of the following could be used to avoid a thin market? In the marke..

Use comparative static analysis : Suppose the firm's profit maximization problem is to choose the labor input N so at to maximize: π = zF(K,N) – wN, where the firm's production technology is given by Y = zF(K, N) = zK^α*N*(1-α) , and 0

Cause reduction in the current price of stock : Which of the following will cause a reduction in the current price of a stock? Suppose NYS decides to DECREASE its marginal income tax rate for households with incomes above $250,000. In the bond market, the likely result is

Prices to prevent unfair pricing by national chains : A proposal has been advanced to limit advertising of pharmaceutical prices to prevent unfair pricing by national chains. You estimate that limits on price advertising will change the price elasticity of demand from -5.63 to -4.43. What economic effec..

What price is the cafe currently charging for gourmet burger : A large multinational restaurant chain has introduced gourmet burgers in addition to the fast-food style hamburgers it has always sold. We consider here the actions of a single franchise’s store and its pricing policy. What price is the cafe currentl..

Adolescents actually reach the formal operational stage : From research what proportion of adolescents actually reach the formal operational stage? What are some of the effects of early maturation for boys and girls? The age of first menstruation has been increasing or decreasing in the last century? Discus..

User Account

All Pages