Why are the capital ratios different

Assignment Help Business Economics

Reference no: EM131109542

a) Show the tangency points of producing some output Q in two countries with identical technology and cost. Country A has higher wage rate compared to Country B. but country B has higher price of capital than Country A, why are the capital ratios different?

b) indifference curves can be positively sloping but the isoquants can never be positively sloping. Why or why not?

c) Input prices can change the production function and also the isoquants. Explain

d) suppose a firm is currently production an output Q using two inputs 1 and 2, where MP1/w1 = MP2/w2 = 1/P = 1/MC Can it still increase the profit? why or why not?

Reference no: EM131109542

Questions Cloud

Marginal cost-marginal revenue and average total cost : Find the equations for: Marginal Cost, Marginal Revenue, Average Total Cost. Now carefully graph them, along with the demand curve on the same graph. What is the optimal price and quantity if the firm can only set one price for all units?

What are the four tenets of natural capitalism : What are the four tenets of natural capitalism. Please explain and tell us which one is in your opinion the most crucial. Discuss ecological footprinting, what does it mean and what are its implications for a given society.

During recessionary periods : During recessionary periods

Chance that the social security trust fund : Explain why there is a chance that the social security trust fund may be depleted by 2035. Does this mean that social security will be bankrupt and will not be able to make any payments to retirees after 2035?

Why are the capital ratios different : Show the tangency points of producing some output Q in two countries with identical technology and cost. Country A has higher wage rate compared to Country B. but country B has higher price of capital than Country A, why are the capital ratios differ..

Equilibrium price if both firms sell to the whole market : Consider the horizontal quality model on the unit interval from 0 to 1. There areNconsumers located uniformly along the interval. There are two firms, with zero marginal costs, initially located at 0 to 1. Solve for the equilibrium price if both firm..

Weighting have on the global consumer community : Of the top 20 global brands, 14 of them (70 percent) are from United States-based corporations. What effects might this weighting have on the global consumer community? Women’s inequality in housework varies between nations. Discuss some of the reaso..

What are the drawbacks of strategy : Discuss the benefits for Bolivia of forming a strategic alliance with a private company to extract lithium. What are the drawbacks of this strategy? What should Bolivia look for in a partner?

Country had value-added tax instead : When traveling on vacation recently in a country with a large consumption tax, your textbook author was presented with a deal: pay cash and get a 10% discount. Given that credit card transactions cost the merchant less than 2%, why did the merchant m..

User Account

All Pages