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A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24.a. What is the K/L ratio in Canada? If Q = 100, what is L & K in Canada? What is total cost?b. What is the K/L ratio in India? If Q = 100, what is L & K in India? What is total cost?c. What would the total cost be in India if the firm used the same factor quantities as
Agrigrow is to purchase a tractor for over-the-road hauling for $90,000. It is expected to be of use to the company for 6 years, after which it has a salvage value for $4,000. Transportation cost savings are expected to be $63,000 per year, includ..
A farmer grows wheat, which he sells to a miller for $100. The miller turns the wheat into flour, which he sells to a baker for $150. The baker turns the wheat into bread, which he sells to consumers for $180. Consumers eat the bread.
Suppose you are the marketing manager for the Fruit of the Loom. An individuals' inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 - 3Q (in cents). If cost to Fruit of the Loom to producing women's underwear is C(Q) ..
You have decided to purchase a small tract of land for building a new home on the outskirts of town. You have some money available but need a loan of $18,000 to make the purchase. The land will be owner-financed over 4 years with end-of-year payme..
Game Theory Suppose there are only two car companies, Ford & Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the price and profit data.
Assuming that this 50 percent overtime-pay premium is newly required for all work beyond eight hours per day, draw a budget constraint that pictures a strategy of cutting hourly pay so that, at the original hours of work.
Suppose that you are going to buy a BMW that sells for $40,000. Assume that the interest rate on a savings account is 10% and that your savings account currently has $40,000. For simplicity, assume that BMWs are the only good in the economy.
The long-run average cost curve for a firm in an industry is: ATC = 10Q2 - 50Q + 100, and its marginal cost is: MC = 30Q2 - 100Q + 100. Market Demand is given by: Qd = 9000 - 200Pmkt a) In the long-run equilibrium, how much will each firm produce
b) Using a method similar to the consumer price index, compute the percentage change in the overall price level. c) If you were to learn that a bottle of Gatorade increased in size from 2009 to 2010, should that information affect your calculation..
Find the man-optimal stable matching and Önd the woman-optimal stable matching. Are these matchings identical. 2. Consider a two-sided matching model with two men and two women. Their preferences are expressed by the table: P (m1) = w1 w2 P (w1) = m2
What single amount on april 1 2012 is equivalent to a series of equal, semiannual cash flows of $1000 that starts with a cash flow on january 1, 2010 and ends with a cash flow on January 1, 2019
Graph the cost curves from part a and indicate the points from part b. Explain why the cost curves have the shape they do. Now, Joe decides to split his operations between two forests and hire his buddy Earl. The production function becomes: qi = ..
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