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Suppose an economy has the following per-worker production function:
y = f(k) = 2 k1/2
The saving rate is s = .30 = 30%; the depreciation rate is d= .10 =10%.
There is no population growth.
The initial capital-labor ratio is k = 25.
What is the consumption in the initial period? What is the change in the capital-labor ratio in the initial period?
We discussed similarities between solutions, or potential solutions, to overfishing and global warming. In a short paragraph, describe that solution (or solutions) and explain, briefly, how it, or they, would work.
Calculate the substitution and income effect for the utility function: u(x,y) = x + lny and show that the Slutsky equation applies to those cases.
If the money supply is growing at a rate of 6 percent a year, real GDP is growing at a rate of 3 percent, and velocity is constant, what will the inflation rate be?
Explain how this investment capital is transformed into fixed capital goods, new technology, and cost reduction using new methods of production.
When interest rates rise, people are:
Elucidate how much the last input added to the total amount of revenue. Elucidate how much the last input added to the total amount of production.
Express Illustrate what will happen also why to the firm's average fixed costs, marginal costs, average costs also profits as the firm makes its choices.
There is a duopoly of beer producers, Biller and Moors, who produce identical hoppy ales, and each have marginal costs of $100 per keg. Assume there are no fixed costs. What are the best response curves in Cournot Oligopoly for these two producers? W..
You are also aware that sometimes when you and the other project members are slaving away over the project, she is playing golf with senior managers. Illustrate what is your evaluation of her behavior.
In Illustrate what way are entrepreneurs also businesses at the helm of the economy but commanded by consumers?
In 2010, the Laser Company produced 18 t-shirts. Three of them were sold to Catherine for $551 each, later that same year Catherine sold the now used t-shirts to Max for $540 each. The reaming t-shirts that Laser produced were not sold to anyone that..
Chelsey is a mother of two and buys her kids\' favorite, Kraft Macaroni and Cheese, when the price of Kraft is the same as the price of the store brand stuff. But when there is any price difference, she buys the cheaper product. Cap City Metro decide..
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