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A firm produces output according to a production function Q=F(K,L)=min {2K,4L}a. how much output is produced when K=2 and L=3?b. if the wage rate is $30 perhour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 4 units of output?c. how does your annswer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour?
Suppose that a firm faces a demand curve that has a constant elasticity of -2. This demand curve is given by q = 256/P^2. Suppose also that the firm has a marginal cost curve of the form MC = 0.001q. a) Graph these demand and marginal cost curves
An American MNC anticipates a receipt of 850,000,000 Japanese yen on Mach 27. The company expects the Japanese yen to appreciate in the following months. Despite that because of its dollar obligations in that month it does not want to leave its lo..
Company A has fixed expenses of $15,000 per year and each unit of product has a $0.002 variable cost. Company B has fixed expenses of $5,000 per year and can produce the same product at a $0.05 variable cost. At what number of units of annual prod..
Wilpen Corporation, a price-setting form, manufactures nearly 80% of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the linear specifications:
Calculate monopoly output, price, and maximum profit when the market demand curve is QD = 20 - 2p, MC = 4Q, and TC = 2Q2. If a new innovation enables the monopoly to cut its costs by 50%, but it costs $50 to adopt this innovation.
Suppose that David has $1000. In the beginning of a year he decided to put his money in a saving account with 5% interest rate per year. The CPI was 150 in the beginning of that year. He expected that the CPI would be 153 in the beginning of the n..
The theoretical background and hypothesis and the methodology section and What is the theoretical basis for answering the research question? That is, what are the arguments, given the existing theories, about how you key independent variable "X" i..
If the ratio of currency to transaction deposits is 2, the ratio of nontransaction deposits to transaction deposits is 5, the ratio of retail money-market funds to transactions deposits is 1, the ratio of required reserves to transactions deposits..
All the major stock market indexes posted gains in 2010. The mean one-year return for stocks in the S&P 500, a group of 500 very large companies, was 12.8%. The mean one-year return for the NASDAQ, a group of 3,200 small and medium-sized companies..
Remembering that the change in the capital stock is investment less depreciation, use a calculator or a computer spreadsheet to show how the capital stock per worker will evolve over time in both countries. calculate income per worker and consumpti..
a company expects to replace office machines and computer equipment at various times over the 6-year planning period. Specifically. The company expects to spend $21000 two years from now. $24000 three years from now. $10000 five years from now.
Some friends of yours have just had a child. Thinking ahead, and realizing the power of compound interest, they are considering investing for their child's college education, which will begin in 18 years. Assume that the cost of a college educatio..
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