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Suppose an economy's production function is Cobb-Douglas with parameter = 0.3.
a. What fractions of income do capital and labor receive?
b. Suppose that immigration increases the labor force by 10 percent. What happens to total output in percent? The rental price of capital? The real wage?
Elucidate why there is a relationship between price elasticity of demand and the effects on total sales revenue.
Pretend that you have just been surprised with a genuine e-mail that says you have just been selected by your favorite pizza delivery company that every day for the next month you will receive your favorite pizza for lunch and another of that same fa..
What's the impact of changes of the industry or economy, competitor actions on Fovever 21 Company? What are the expectations of shareholders, stock analysts, and rating agencies from Forever 21 Company?
Watch the video for the week, read the lecture notes carefully before you answer the question. Should a perfectly competitive firm making a loss in the short-run always leave the market? Why? What about in the long-run?
However, it hasn't dried up even though some of the least efficient mining sites have shut down in the US and Canada and (as the following quote from a Wall Street Journal article illustrates ) remaining oil producers despite increases in total pr..
Compute the marginal revenue when the price elasticity of demand is −0.25.
Explain the benefits and drawbacks of using software development tools provided by cloud vendors to develop cloud-based solutions for an organization.
Consider the famous diamond-water paradox: water is necessary for life and extremely useful, but is very cheap on a per gallon basis (NYC charges $3.70 for 748 gallons), while diamonds are not much use for most things, but extremely expensive on a pe..
Why is NOT a good idea for Federal Government to spend money, without paying for it in tax revenues and for the Federal Reserve to increase the money supply in the economy by creating and issuing more money?
President Barack Obama's quest to raise the federal minimum wage to $10.10 an hour would eliminate about 500,000 jobs by 2016 but increase pay for millions of American's and lift nearly a million out of poverty, a Congressional Budget Office report f..
If the dollar appreciates in value relative to foreign currencies
Explain the following practice/policy in terms of externalities. Charitable donation over HK$100 is tax deductible in Hong Kong. Why are some of the products, such as gasoline, taxed more heavily than other goods such as food? Explain your answer in ..
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