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Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the firm's MPL is 10 while its MPK is 5. a. Write the firm's isocost equation. What is the slope of the isocost? b. Determine if the firm's mix of inputs is optimal. Explain. c. If your answer to "b" is no, what should the firm do to improve its performance? Explain. d. Now suppose as a result of a mandated increase in the minimum wage the wage increases to $80. What would be the implication of this change for this firm?
What is the value of a preferred stock that pays a perpetual dividend of $100 at the end of each year when the interest rate is 6 percent?
q. i would like you to read up on the following iposa. tesla motors tsla - 12910b. google goog - 4292004go to the sec
Select 3 basic strategies that a multinational corporation might use from the following list of strategies: vertical and horizontal integration, outsourcing, merger and acquisition, limit pricing, product differentiation, price discrimination and tra..
South western Moving and Storage (SMS) buy a large-capacity trailer truck for $115,000 to provide short-haul earth moving services. SMS is planning selling the truck in seven years for a price of $45,000. Determine the engineering economy symbols and..
The world has gone through several different international financial orders over past 100 years. Explain how each one came into being and why the order eventually ran into difficulties and was suspended by another order.
When the price of gasoline goes up demand for the Toyota Prius. Is this a violation of the principles of demand since gasoline is a complement to the Prius? Explain.
What is the equation of the demand curve if consumer incomes are$30,000, the price of good Y is $10, and the price of good Z is $20? Graph the demand curve that you found in (b), showing intercepts and slope. If the price of good X is $15, what is t..
Suppose you plan to purchase a Ford Mustang and need a car finance of $12,000. You take the loan from the K-State Credit Union at 3.5% interest rate. What is the yearly payment to the bank to pay off the loan in 10 years? Please do not just write the..
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed= (1/3 of income)-$15,000. A family earning $60,000 before taxes would have how much after-tax income?
Assume firm A wants to merge with firm B for $7.5 billion. Before the potential merger, the market for the good produced by firm A and B consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 2,621. Firm B’s..
Assume the United States economy is in a deep recession explain how does this recession affect the US major trading partners such as China, Canada and Japan.
Draw in excel an isoquant that shows little substitution between two factor inputs and on that shows large substitution. Vertical represents capital and horizontal represents labor
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