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Question: Graphically illustrate:
a) what happens to the rental price of capital and the marginal product of capital as the stock of capital increases
b) how the change in the marginal product of capital changes the investment demand function. Explain in words how this process will continue until the steady state is reached.
The demand curve is given by: QD= 500- 5Px+ 0.5I + 10Py-2Pz where QD= quanity demanded of good X Px= price of good X I= consumer income, in thousands Py= price of Good Y Pz= price of good Z a) Based on the demand curve above , is X a normal or infe..
An export subsidy has the opposite effect on terms of trade to the effect of an import tariff. Domestically a tariff will raise the price of the import good.
you have been asked by a manager in your organization to put together a training program explaining net present value
In 2001 and 2002, political opinion was bitterly divided between the Republicans, who wanted to cut high marginal personal income tax rates and offer.
A hospital would replace five personnel that currently cover three shifts per day. 365 days per year. Each person earns $35,000 per year. Company-paid benefits and overhead are 45% of wages. Money costs 8% after income taxes.
Write the model in matrix form and determine the equilibrium values of national income, consumption, investment, and tax.
suppose honey is produced in a beehive using bees and sugar. each honey producer uses one beehive which she rents for
What tax level would achieve this goal? How much abatement would be done by each firm?
Does advertising improve the economic efficiency of markets from an economist's perspective? Please explain and support your discussion with a diagrammatic model and include any assumptions regarding elasticity in your explanation.
Select an article from any Australian news websites or newspapers(e.g. Financial Review, The Age, and Sydney Morning Herald). Ensure that the article you choose contains news/information/description about: (a) Competition and the nature of competitiv..
Question is - Visit a nationwide chain store or restaurant and take note of how all decor, design and other environmental choices, including visual, aural, tactile , and even scent choices, help achieve the goal of attracting and retaining customers ..
Which input bundle represents efficient production of 100 units of output if the rental paid to capital is $25 and the wage paid to labor is $50? Round any decimals to the nearest hundredth. Derive the firm's cost function using the rental and wa..
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