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A reduction in minimum wages during the summer months would reduce the cost of labor to firms, but it would also reduce the wage that minimum-wage earners receive.
a. Who would benefit from this measure?
b. Who would lose?
c. Would you support this program?
What is the cost function, marginal cost function, and average cost function for each plant? b) What is the efficient scale and minimum average cost for each plant? c) What is the cost function for the firm?
as the exclusive carrier on a local airline route, a regional airline must determine the number of flights it will provide and the fare it will charge. Taking into account operating and fuel costs, airport changes, and so on, the estimated cost pe..
Suppose that you are interested in estimating the ceteris paribus relationship between y and x1. For this purpose you also collect data on two control variables, x2 and x3. Let β˜ be the simple regression estimate from y on x1 and let βˆ be the multi..
Computer Products Corp. sells peripheral equipment used by both private businesses and the government. Due to a recession, Computer Product's sales have declined by 100,000 units and it now has 200,000 units of excess capacity.
At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot p..
Derive the solution to this problem. How do the criteria differ? Use the SVD of the Lj to simplify the comparison of the two approaches.
A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same. How much of good x does he now demand? Would Max be as well off as he was before the tax if when the tax was imposed, his income rose by an amount eq..
suppose z follows a standard normal distribution i.e. a normal distribution with mean 0 and variance 1.a. what is the
Briefly describe the trade-offs involved in each of the following decisions. Specifically, list some of the opportunity costs associatedwith each decision, paying particular attention to the tradeoffs between present and future consumption.
compute the opportunity cost in forgone tanks for each additional truck producedtruck output 0 1
In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together.
If a piece of earthmoving equipment was purchased for $120,000. Using MACRS prescribed percentages, find the depreciation for each year over its recovery period if the equipment is sold for $30,000 after four years.
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