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Suppose that an economy’s production function is cobb-douglass with CRS(Y=AK^α * L^1-α ) and α=.3
a. What fractions of income do capital and labor receive?
b. Suppose that labor force increases by 15 percent. How much does output increase or decrease by in percentage terms? The rental price of capital? The real wage?
c. Suppose that the capital stock decreases by 15 percent. How much does output increase or decrease by in percentage terms? The rental price of capital? The real wage?
d. Suppose that a technological advance raises the value of the parameter A by 15 percent. How much does output increase or decrease by in percentage terms? The rental price of capital? The real wage?
When you buy 100 shares of IBM it is an investment according to economists. If consumers have few durable goods, this will lower the C line, all other things equal. A corporation is a legal person separate from the owners. Investment is more stable t..
How much would the company have to invest now at an interest rate of 3% per year to sufficiently provide for the annual payments, if the first payment will begin 4 years from now? Specify answer to nearest cent
A cappuccino vending machine is designed to dispense an average of μ oz per cup. If the ounces per fill are normally distributed, with a standard deviation of 0.4 oz, what value should μ be set at so 6 oz cups will overflow only 2% of the time?
1. What are the growth promoting policies prescribed by neoclassical models? 2. What are the growth promoting policies prescribed by new growth models? Give me the good explanation.
Why do some low-wage countries, such as China, pose a threat to manufacturers in industrial countries, such as the United States, whereas other low-wage countries, such as Haiti, do not?
Inflation may fall without a significant increase in unemployment if
When Ajax co. Produced 3 units of output per week, its total fixed cost was $100 and total variable cost was $45. When output increased to 4 units per week, total fixed cost remained at $100 and total variable cost increased to $65.
Suppose that in the 1990's, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration.
Read the following article: “Porter or Mintzberg: Whose View of Strategy Is the Most Relevant Today?”. What is the difference between deliberate strategies and emergent strategies? How might emergent strategies help with a future strategic planning p..
Compute cumulative benefits per stage Compute cumulative patients per stage Graph the cumulative benefits curve Which variable represents marginal benefits per stage? C
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
q1. firms with costs c q2 36 face demand p 24 - nq and behave under the rules of monopolistic competition. compute
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