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A person consumes only two goods, pizza and tacos. Pizza costs $3.21 each and tacos cost $4.23 each. His income is $48,792. If Good A is on the vertical axis and the marginal rate of substitution is equal to -qA/qB what is the optimal amount of consumption of tacos?
Illustrate what matters is not the absolute abundance of factors, but their relative abundance. Poor countries have an abundance of labor relative to capital when compared to more developed countries.
Carefully draw a diagram illustrating the cost curves of the above shoe firm.
Consider the production function q=4L^.3K^.8. In the short run, assume K=5. Derive formulas for Total Product, Average Product, and Marginal Product. Graph these three functions.
Compare salvage values of $400K and $0 after a life of 30 years. Use straight-line depreciation, an interest rate of 10%, and a tax rate of 40%.
Both Cameron and Daley are large public corporations with subsidiaries throughout the world. Cameron uses a centralized approach and makes most of the decisions for its subsidiaries. Discuss a major advantage and a major disadvantage to a decentraliz..
Proposals to reduce patent length for drugs are sometimes made, but some critics argue that such a change would result in even higher prices during the patent period as companies would need to recover drug development costs more quickly.
The political business cycle refers to
After watching the Freakonomics video clip on the incentives that sumo wrestlers face
Why would a government balanced budget be bad for the economy, the people, and the federal government itself. Please cite references. Need this ASAP!
A paper mill is considering two types of pollution control equipment.
Two bidders are about to compete in an auction for an object. Each of them has a private value for the item that the other believes is distributed uniformly from zero to fifty. Suppose that the auction format is a first-price sealed-bid auction. Prov..
Lisa is a self-employed physical therapist who works from a rented space. Lisa charges $250 for a therapy session. She incurred the following costs last month: space and equipment rental, $1400; wages, $3500; materials, $1800. If Lisa’s profit last m..
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