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Consider a firm that uses two inputs: skilled workers and computers. Explain what it means if skilled workers and computers are complements in production. Specifically, if the price of computers falls, and skilled workers and computers are complements, will the firm want to hire more or fewer skilled workers?.
A wealthy businessman wants to start a permanent fund for supporting research on sustainability. The donor plans to give equal amounts of money for each of the next five years, plus one gift now (i.e., six donations in total), so that $100,000 per ye..
The idea of the Law of Demand, as applied to electric cars, assumes which of the following to be constant? When economists say that the demand for a product has decreased, they mean that: Which of the following will not cause a change in the demand ..
Explain how much shelter can she buy if she purchases 2 units of food.
A market in which there is an additional transaction that would benefit a buyer, a seller, and any third parties affected by the transaction is called. In the case of spillover benefits or costs,
The two firms have the same demand curve P=100-4Q, Marginal cost of Firm 1 is 5 and for firm 2 is 10.
What is the current household saving rate in the United States? What do you think of this saving rate? Too high or low?
An appliance manufacturer produces two models of microwave ovens: H and W. Both models require fabrication and assembly work; each H uses four hours of fabrication and two hours of assembly, and each W uses two hours of fabrication and six hours of a..
If your average pre-retirement earnings were $30,000 per year, your highest preretirement earnings achieved was $90,000 per year and you receive $20,000 per year in retirement benefits, what is the replacement rate?
Arizona and manufactures clay fire pits for patios. They are one of about two dozen firms around the world that manufacture and sell clay fire pits for retailers such as Home Depot, Lowe’s, Front Gate, and other upscale home product chains. If Redsto..
Now assume there are 6,350 employees and probability of dying is still 1in 5,000. What is the value of 1 statistical life?
Illustrate what emissions fee should be imposed to achieve the cost-effective outcome. How much would each firm pay in taxes.
How can a small special-interest group win, since the benefits flow only to a small group, under a situation of majority voting?
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