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The production function for the automotive and parts industry is
where M is energy and materials (based loosely on Klein, 2003). What kind of returns to scale does this production function exhibit? What is the marginal product of materials?
Traditional free-trade theories are based on six crucial assumptions, which may or may not be valid for developing nations (or for developed nations for that matter). What are these crucial assumptions, and how might they be violated in the real w..
A random variable X is defined to be the larger of the two values when two dice are thrown, or the value if the values are the same. Find the probability distribution for X.
Ross Machine Company in Smithville, Tennessee is considering buying a "CNC Machining Center" for its machining department. The cost of the machine is $60,000. A down payment of $20,000 is required by the machine tool builder
Let C1x2 = 2x2 + 300x + 50 be the cost of producing x items. What is the cost of producing the 89th item? Give both the exact and approximate answers.
As capital investment analyst for the Parkhurst Printing Corporation, you have been asked to evaluate the advisability of purchasing a new printing press to accommodate projected increases in demand. This new machine is expected to last 5 years, a..
How might this difference in fiscal dominance affect the central bank's credibility?
Develop an Excel spreadsheet that Souter can use to evaluate the economics of the two-part fee structure
Qt = 2.5 - 0.3 x Pt + 12 x Mt Where Qt represents the quantity of widgets sold per period t, Pt represents the price of widgets during period t, and Mt represents average household income of customers during period t.
Suppose a country's GDP equals $500 billion for a particular year. Economists in the country estimate that household production equals 40% of GDP. What is the value of the country's household production for that year. Counting both GDP and househo..
In each case, explain what sources of competition the firm might face that would limit its market power.
A new gear grinding machine for composite materials has a first cost of P=$100,000 and can be used for a maximum of 3 years. Its salvage value is estimated by the relation S=P(0.85)n, where n is the number of years after purchase. The operating co..
The federal government would like to give grants to local states to promote free medical vaccinations for children. However, because of a limited budget the federal government wishes to target its spending as evidently as possible.
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