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Suppose that a firm's production function is given by Q=K^0.33L^0.67, Where MPK=0.33K^-0.67L^0.67 and MPL= 0.67K^0.33L^-0.33
A. As L increases, what happens to the marginal product of labor?
B. As K increases, what happens to the marginal product of labor?
C. Why would the MPL change as K changes?
D. What happens to the marginal product of capital (MPK) AS K increases? As L increases?
When looking at inflation, you will find that this is measuring how much prices change. How does this influence the unemployment rate?
Assume that the market for wheat is perfectly competitive, with demand curve P = 5000 ? 0.01QD and a supply curve P = 1+0.1QS. Each identical wheat producer has a total cost curve given by T C = 1+Q+Q2 , which results in marginal cost of MC = 1 + 2Q...
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What does the change in his con- sumption reflect a substitution or an income effect.
Consider a perfectly competitive industry in which the inverse demand is given by p(y)=2001-2y and each firm has the following cost function : c (y)=(1/3)y^3+18 for y>0, c(y)=0 for y=0., In the long-run equilibrium, what price will be charged for the..
Suppose the interest rate is 5% and that you are to receive three annual payments of $10,000, with the first payment one year from now, the second payment two years from now, and the third payment three years from now. What is the present value of th..
You take $1000 you had kept under your mattress and deposit it in your bank account. If this $1000 stays in the banking system as reserves and if banks hold reserves equal to 20 percent of deposits, by how much does the total amount of deposits in th..
You have a choice of borrowing money from a finance company at 24 percent compounded quarterly or borrowing money from a bank at 26 percent compounded annually. Which alternative is the most attractive? If you can borrow funds from a bank at 26% comp..
Assume a product as a reliability represented by an exponential distribution with beta = 75 (weeks). What is the 50% life expectancy e.g. the length of time where the reliability = 50%?
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