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A firm is producing 1,000 units of output with 40 units of labor and 30 units of capital. The marginal product of the last units of labor and capital are, respectively, MPL = 69 and MPK = 135. The prices of labor and capital are, respectively, w = 30 and r = 85. What should the firm do in order to minimize the cost of producing 1,000 units of output? Should the firm increase capital and decrease labor or the other way around? When should the firm stop replacing one input for the other? Explain.
Elucidate what would be according to your opinion the right mix of monetary and fiscal policies for years 2011-2012. Elucidate what would be according to your opinion the appropriate structure of your investment portfolio.
What is his budget constraint in terms of Consumption and Hours Worked. Draw his budget constraint on diagram. Now draw several indifference curves and indicate utility maximizing level of Hours worked and Consumption.
Currently, every book it sells is priced at $10.50. Show strategy to offer a discount that lowers the price of a book to $9.50, a 10% reduction in price using the midpoint formula.
If the company will sell the number of units obtained in part d and wants to maintain the same profit as last year, what will its new price have to be.
A construction company is bidding on a project comprising five high-rise buildings to be erected one after the other.
Discuss Explain how "Game Theory" can be used to improve strategic decision making in competitive situations.
what could affect every also a Discussion of why it is more accurate to examine both when trying to conclude a nation's economic success.
Explicate fully why the monopolist will never select to operate where the demand curve is inelastic.
Given economic conditions today, do you suggest expansionary fiscal policy or contractionary fiscal policy. Illustrate what effect would your suggestions have on production and employment.
If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate delivery increases
Show the effect of an increase in the price that the government charges for electricity.
Some people are saying which majority of the budget deficit are funds which some branches of the government owe to other branches.
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