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1) Consider the Production functions. Indicate whether these functions are decreasing returns to scale, constant returns to scale or increasing returns to scale.
a) 2K + L
b) K2/L3
c) K0.3L0.7
2) What are some factors that cause an increase in investment in a small closed economy? How does this affect trade surplus/deficit? Explain in words and show graphically.
Cable operator Charter Communications Inc. arranged to overpay Scientific Atlanta and Motorola $20 for each set-top box it purchased with the understanding that they would return the overpayment by purchasing cable advertising from Charter.
You are an economist in a company where you have recently got a new Chief Executive Officer (CEO) who is assigned to merge your company with other companies in the market. Give a mathematical expression for Total Revenue, Marginal Revenue, marginal c..
What are efficiency wages and under what circumstances would a firm choose to pay efficiency wages? Explain the complete solution in detail.
What are the factors determining the nominal interest rates. The real risk-free interest rate is determined in the loanable funds market by supply and demand for real loanable funds. What 4 changes (?) would shift the supply of real loanable funds..
In the specific-factors model, an increase in the price of manufactured goods will cause: A. a decrease in the nominal wage in the manufacturing sector. B. an increase in the real rental of capital. C. a decrease in the real rental of capital. D. no ..
a change in environmental regulation has dramatically raised the price of a substitute chemical that indirectly competes with T3MP. This change undermines the market for the substitute, which is about twice the size of the market for T3MP.
q1. tanisha owns one share of ibm stock which is currently trading at 80. there is a 50 chance that the share price
GoBulls Media is considering opening a new manufacturing facility to process and mail coupons to 660,000 households in the Tampa Bay area. The new facility will require an initial investment of $240,000 and an annual operating cost of $22,000. It wil..
“Minimum wage laws help low-wage workers because they simultaneously increase wages and reduce the marginal expense of labor.” Analyze this statement.
A coupon bond has a face value of $1,000 and maturity 5 years. The required rate of return for the bond is 5%. The bond is sold at a price of $1,000 now. Calculate the coupon rate of the bond. Year by year, calculate the current yield and the capital..
Mike buys a lawn mower that comes with the first two years of maintenance for free. The cost for the third year is $100 dollars and increases by $50 each year.
Discuss the issues associated with federalism and what local, state, and federal policy makers need to consider when developing emergency response policies?
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