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Given the following production function with two inputs, Capital (K) and Labor (L), whose input prices are $1 each. Suppose the company needed to produce 50 units. What would be the cost minimizing combination of capital and labor needed to produce that level of output?
A perfectly competeitive, constant-cost industry has a markey demand curve P=100-(1/5)Y where Y is the aggregate output in the market. Each firm has a U-shaped long-run average cost function with a minimum of $10. The efficient scale of production..
What amount would you need to invest today in order to set asside sufficient funds now to meet the future obligations Assume your money could earn 5.0% per year in low risk securities in the 7 year period in question.
Refer to the above data. If the product price is $25 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss How much will the profit or loss be How much will the profit or loss be
Revenue from the sale of ergonomic hand tools was $300,000 in years 1 through 4 and $465,000 in years 5 through 9. Determine the equivalent annual revenue in year 1 through 9 at an interest rate of %10 per year.
Say that investment increases by 100 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 3. If the money multiplier is 5, and each 5-unit change in the money supply changes the interest rate by 1 percent, what op..
Your credit card has a current balance of $4965.20. This Balance is accruing interest at a nominal rate of 9.0% compounded monthly. Assuming you didnt spend any more on this card, what uniform monthly payment over the next 36 months would be requi..
Explain the multiplier intuitively. Why is it that an increase in planned investment of $100 raises equilibrium output by more than $100 Why is the effect on equilibrium output finite How do we know that the multiplier is 1/MPS
Suppose the number of employed people in an economy is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725.What is the size of the labor force
The Town-Pump service station has performed an analysis of its customers and found that 85% pay on credit and the rest pay cash. We are interested in finding the probability distribution of the random variable, X.
A project will cost $50,000. The benefits at the end of the first year are estimated to be $10,000, increasing at a 10% uniform rate in subsequent years. Using an 8-year analysis period and a 10% interest rate, compute the benefit-cost ratio.
assume that intermediaries come from a competitive market with and equilibrium price of $8 per unit for their services, that is, any buyer or seller who wants an intermediary's services must pay $8 for them. What is the maximum per unit that selle..
Two different alternatives shown in the table below are being considered by Kal Tech Engineering systems. Assume that alternatives X and Y are replaced at the end of their lives.Data Alternative X Alternative Y Initial Cost $6,000 $1,500Uniform Ann..
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