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Consider the following Cobb- Douglas production for red bean coffee. q=(l^0.2)*(k^0.5) a. intutively, why are cobb-douglas production function more appropriate representations of reality than, say, linear production functions ? b. based on the function above, is red bean cofee's business experiencing economies or diseconomies of scale? explain how uou arrived at your answer. c. if red bean cofee decided to boost labor by 15% and captail by 10%, how much will productivity increase? d. if red bean cofee wanted to boost productivity by 40% and already knew they were going to increase captail by 20%, how much would they have to increase their labor force to rach this production targer?
The cost of a water jet machine to be used for slicing cheese is $45,640. The machine will generate net annual income of $10,000 during its useful life of 7 years. Determine the rate of return of on investment in this machine. Express the answer as a..
Please carefully read the following case, “NBA: Competing on Global Delivery with Akamai OS Streaming,” and answer the following question: Using Porter’s competitive forces model, analyze the NBA’s market situation. How does the use of Akamai help th..
Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. Last month she sold $3,000 worth of product (sandwiches and sodas) to 300..
The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using their microcomputer along with a commercial database management system (DBMS) to develop a __________. Now the company can rea..
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they buy another copier or hire another worker?
A firm has a demand function P = 200 – 5Q and a cost function: AC=MC=10. What price, quantity, and corresponding profit occur if this a purely competitive market? Determine the optimal price, quantity and economic profit for the firm if it is a pure ..
Chase is injured in an accident while driving an off-road vehicle made by Drivers Edge, Inc., an out-of-state corporation. Chase files a suit against Drivers Edge, alleging negligence, and mails a summons and a copy of the complaint to the firm by ce..
Let’s assume the demand for balloons is expressed by P=40-2Q. The supply is P=3Q. What is the equilibrium price and quantity? What is producer surplus? What is the consumer surplus?
q.the federal government occasionally goes through the process of reauthorizing and modifying the state childrens
The monopolist from the previous problem now faces a specific tax of 20, τ = 20. What are the optimal quantity and price given the tax? Calculate the welfare loss from the tax.
"Angela view Apples and Bread as a perfect substitutes at a 1:1 ratio. Thus she will always spend half of her income on each good. Graphically illustrate, aided with verbal discussion, why isoquants cannot intersect.
The publisher of a new book figures fixed cost at $92,000 and variable cost at $2.10 for each book produced. If the book is sold to distributors for $15 each, how many must be sold for the publisher to break even?
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