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“Teams, schmeams!” gripes your boss. “We have 100 workers making sleeping bags. Our costs our determined by the prices we pay for supplies and workers, and there’s not much else we can do.”
1) Explain to your boss why team production may be important for the firm and offer a suggestion for how large the teams should be and on how team members should be paid.
The local city government has the offer of a gift. The donor wants to donate toward perpetual upkeep of the newly built park. If the upkeep cost is $25,000 per year and her gift as a long term investment can earn 8% annually,
The Fed can reduce the money supply by,
You have the utility function U(x,y) = 3x+y, the price of X is $1 and the price of Y is $2. What is the formula for the expenditure minimizing bundle? You have the utility function U(x,y) = 3x+y, the price of X is $1 and the price of Y is $2. What is..
How do two relate among each other in the Circular Flow Economy and to the Government and Foreign Sector components. How does all this fit on a Wheel of Income.
Consider a market characterized by the following demand and supply curves: Qd = 1600 - 20p and Qs = - 900 + 30p. If regulators decide to restrict payments by setting a price ceiling equal to $35, how many units will be sold or bought? Calculate the ..
Assume all money is held in the form of currency. Assume central bank money (H) is initially equal to $100 million. Now suppose the Fed conducts an open market purchase of government bonds equal to $10 million. Explain the effect of this action on:
Comment on the following statement: “The free market allows hospitals to enter markets too easily; and regulators can potentially improve social well-being by restricting entry.”
Illustrate what mistakes did policymakers make that have kept developing nations from growing more quickly.
what is the consumption function b. what is the equation of the AE curve c. calculate equilibrium expenditure
Consider an initial stock of 5000 tons of high grade ore. The demand function for this ore is P = 2400 – 0.2Q (Q is measured in tons/year), and the cost of extraction is constant at c = $200/ton. The discount rate is r = 0.10. Using a discount rate o..
Suppose that the production function for Hannah and Sam’s home remodeling business is Q = F(L, K) = 10L0.2K0.3. If the wage rate is $1,500 per week and the cost of renting a unit of capital is $1,000 per week, what is the least-cost input combination..
Typical economic decisions made by the managers of a firm .determine and explain which basic economic problem: of what, how, and for whom
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