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Question: A firm uses inputs K, L and R to manufacture good Q. It has a budget of £828 and its production function (for positive values of Q) is
Q = 20K + 16L + 12R - 0.2K2 - 0.1L2 - 0.3R2
If PK = £20, PL = £10 and PR = £6, what is the maximum output it can produce? Assume that second-order conditions for a maximum are satisfied for the relevant Lagrangian.
Using the data provided above, determine if the Hernandez Corp. is using a cost minimizing combination of inputs. Explain your answer/show your work. If your answer is no, how should the input combination be adjusted?
Did you know that many large countries utilize a national sales tax, or value added tax, to raise revenues? What if, -in an effort to FIX THE ECONOMY, the U.S. decided to do this? What other countries are doing this and to what degree of success?
Why might firms consider issuing stock in foreign countries? Why might U.S. businesses look to issue more stock in Europe since the adoption of the euro (implemented in 1999)?
Finding the required interest rate Your parents will retire in 15 years. They currently have $270,000, and they think they will need $850,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any ad..
Which determinant of demand changes in the personal Computer marketplace as more persons become interested
According to the permanent income hypothesis, how will the paths of borrowing and consumption change in response to: A temporary decrease in income when it occurs.
What are the current account and the capital account in the balance of payments? For each of the international transactions below, determine whether it is a credit or a debit in the US balance of payments, whether it is a current account or capital a..
Suppose that last year $1 US exchange for 2.2 Euros. this year, however, $1 exchange for 2.3 euros. as a result of this stronger dollar, the United States' short-run aggregated (SRAS) curve shifted to the right. Why did a stronger dollar cause SRAS t..
The company's senior managers are reviewing the company's Annual Report, which will be presented at the next quarterly shareholder's meeting. The annual report includes the following risk statements:
Pick any public company and discuss which 2 or 3 macroeconomic indicators which would most profoundly affect that business and why.
The central bank new head decides to increase the response of interest rates to inflation. Explain how does this change in policy alter the response of the economy to a supply shock.
suppose that an individual is willing to substitute pepperoni for anchovies at a constant rate on a pizza,what type of goods are inbolved? construct an indifference map that is consistent with preferences for these goods and show the relvant pr..
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