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Suppose that a firm’s only viable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.
a. What is the marginal physical product of the fifth worker?
The growth rate of population in Country A is greater than in Country B. According to the Solow model, which country should have a higher growth rate of output per worker?
Describe what do you mean by the price elasticity of supply.
Explain how bank losses from mortgage backed securities could lead to an investment bank becoming insolvent and going bankrupt. Your explanation should use a somewhat realistic T-account (see thenotes), the concept of leverage
If unit labor costs in Spain and Portugal rise, but unit labor costs in Germany decline and other producer prices remain unchanged, what effect should these factors, by themselves, have on export trade, and why
Suppose that in small open economy the following describes investment demand, private saving, and government budget deficit.
Find an article from the media (internet, newspapers, magazines, etc.) on a current event that addresses an economic concept (e.g., consumption, saving, investment, real GDP, marginal propensity to consume, income multiplier, etc.). Write a one t..
Eluciadte the law of demand. Why does a demand curve slope downward. How is market demand curve derived from individual demand curves.
Assume both the spot rates unexpectedly shift downward by 1%. What is the price of a forward contract otherwise identical to yours.
A profit-maximizing company operating in a perfectly competitive market can sell products for $100 a unit. The company has a cost function represented by:
As an industry moves from being a monopoly to a monopolistically competitive one (due to the entry of new competitors as the monopoly's patents expire, for example), what happens to the elasticity of the demand curve facing the firm
A company in a perfectly competitive industry has invented and patented new process for making a plastic product q. The new process lowers the company's average cost curve,
Mr.Fritz wishes to purchase a bond having a face value of $1000 and a bond rate of 8% payable annually. The bond has a remaining life of 12 years. In order to earn 10% rate of return on the investment, what amount should be paid for the bond?
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