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A firm has two variable factors and a production function y = (2x1 + 4x2) 1/2. Without taking any derivatives, determine the technical rate of substitution between x1 and x2.
Your company seeks to take over Good Deal Company. Companies offer for Good Deal is for $3 million in cash upon signing the agreement followed by 10 annual payments of $300,000 starting one year after the agreement. The time value of money is 10%. Wh..
When Alex's income was $3000, he bought 4 bagels and 12 donuts a month. Now hus income is $5000 and he buys 8 bagels and 6 donuts a month. Calculate Alex's income elasticity of demand for a. Bagel b. Donuts
The student could also have earned $15,000 by getting a job instead of attending college and 10 percent interest on expenses he or she incurs at the beginning of the year. Calculate the explicit, implicit, and the total economic costs of attending..
Consider the following simple model with investment and government spending exogenous: Derive the change in Y associated with an increase in taxes T. Show the results graphically and algebraically. What is the tax multiplier?
If the American auto companies make a breakthroufh in automobile technology and are able to produce a car that gets 70 miles to the gallon, what will happen to the value of the dollar? Use the demand-supply model of the dollar to explain.
What would be the equilibrium price? What is the equilibrium quantity?
In about 500 words, From a geographical standpoint, why is SPACE so integral to the survival of Capitalism as an economic system?
A perfectly competitive firm faces a:
Illustrate what is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the cost from being regulated at the socially optimal level.
Consider the iron ore production industry, and assume that there are just two producers, FM and BHP. Initially assume that both firms are identical in terms of their production costs. If the two firms can cooperate, what should they do in order to ma..
Suppose that a monopolist has the ability to impose a two-part tariff pricing policy. Would it necessarily set a positive fee as part of its profit-maximizing policy? Explain. What would limit a monopolist’s ability to set such fees?
In fact, an insurance agent explains that he is always true. Nevertheless, the engineer buys fire insurance. Explain why this is or is not a logical decision.
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