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A firm production function is given by q = f(k,l) = k·l1/2. w = $20, v = $5. Consider a short-run situation where the level of capital is fixed at k1 = 10. At p = $12, in the short-run, what is the quantity supplied by this price-taking firm? (NOTE: write your answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. HINTS: First, derive this firm short-run total cost function. Next, compute its short-run marginal cost function. Finally, use the short-run profit maximization rule to derive its short-run supply equation. Show all steps.
Illustrate what would be a simple options strategy utilizing a put and a call to exploit your conviction about the stock price"s future movement.
During the recession of 2001, despite the reduce in aggregate Demand the price level was essentially stable. That of the following is a reason for this.
Suppose that U.S. debt is $100 trillion dollars at the beginning of the fiscal year. During the fiscal year, the government spending is $7 trillion and government transfers are $2 trillion and tax revenues equal $10 trillion. At the end of the fiscal..
if they use a regulation should they allow for pollution permits? explain the benefits and detriments of each form of control. what would you recommend?
Clearly evalute at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation.
How much would you be willing to pay for this security if he market interest rate is 6%? Suppose that you have just purchased the security, and suddenly the market interest rate falls to 5%. What is the security worth? Suppose that one year has elaps..
The traditional remedy for a nuisance is an injunction, and the non-traditional remedy is damages. Explain in a paragraph, circumstances in which the former is more efficient than the latter, and the circumstances in which the opposite is true.
In 2005, Clear Channel (an owner of popular radio stations) spun off concert promoter Live Nation into an independent company. How would this affect prices for concert tickets or rates for radio programming?
Do you think that Monetary policy is easier to make than fiscal policy? Why is one easier or harder than the other? What is the Goal of each of the policies? Are the goals in conflict or complements of each other?
According to the law of diminishing marginal returns, which of the following is true?
What factors determine the demand, say, for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system?
At Forest Point Construction, your boss says that he can estimate the total project time based on his personal experience. You are trying to convince him that he should use project management techniques to handle a complex project. What is the correc..
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