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Q(K,L) = K1/3L1/3 Labour cost: w = $8 Capital rental cost: v = $8
The government raises the minimum wage by 30%. Using the four Hicks-Marshall rules of derived demand as they apply to a particular industry (for example, you could pick the fast food industry), analyze the conditions under which job loss among teenag..
X is a u.s. manufacturer of digital controls for milling machines. the firm has been exporting its least expensive model, which sells for us$1,500 to Mexico, where the demand has proved to be Q= 3,500 - 2P, where Q= quantity demanded and P= price. X ..
Suppose someone tells you that, over time, free trade is helping capitalists and harming workers. What fact would you cite to challenge this statement?
Why do traditional economic theories of supply and demand don't adequately address the economic realities of healthcare delivery in the United States?
Now consult recent International Monetary Fund publications to determine the extent to which EU members conduct international trade with each other rather than with outside nations. What has been happening to the total magnitude of EU imports from no..
Indicate whether each statement below is positive or normative. Briefly explain each answer. As a society we should cut pollution by 5% to preserve nature for future generations. The larger a country is it will have a higher GDP (Gross Domestic Produ..
At $25/hour she worked 70 hours week. At $400/hour, she now works 40 hours/week. What is this an example of?
Cartwright Computing expects to order 600,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $300 per order; What is the economic ordering quantity for chips? How many or..
You may have heard from the news some commentators saying that the Federal Reserve, when pursuing an expansionary monetary policy, engages in "helicopter money." People hold equal amounts of currency and demand deposits. Banks hold 20 percent of dep..
The following table represents the costs of five possible sellers. Refer to Table 7-16. If each producer has one unit available for sale, and if the market equilibrium price is $70, how much is the combined total cost of all participating sellers in ..
You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following data at his present level of production: Draw a graph for the raw cotton market and a graph for Jacks farm current situat..
What is market power? Define market power, name a few sources of market power, and explain why market power is always a source of market inefficiency.
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