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An econometrician has calculated that when a firm minimizes its total cost of producing output Q, it uses the following amounts of the inputs, L and K:
These are the least cost combinations of L and K. The market wage and rental rates are given by w and r.
From this information decide the production function (Q in terms of L and K) that explains the technology that the firm uses. Show and explain all your calculations.
If the interest group theory applies to hospitals, explain why does not it also apply to nursing homes? Would a doctor owned, for profit hospital be as attractive to physicians as a nonprofit hospital?
Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works. Because you have a good understanding of basic economics, he has asked you to explain..
Monthly Gross Income: $3,000 Money you have in savings for a down payment: $9,500 You have monthly payments for all existing debts of $400 How much do you qualify to borrow (assume 28% debt to income ratio and 10% down payment)
charles calomiris an economist at columbia university said the following about the initiatives of the treasury and the
Which, if any, of the following changes is likely to cause reported GDP (real and nominal) to increase when, in fact, total economic production is little changed?
An increase in the excise tax on alcohol? a)will have no effect on alcohol consumption b)will generate minimal tax revenues for the federal government c)couped with a uniform drinking age nationwide would save lives
the demand for haddock has been estimate aslog qab log pc log id log pmwhere qquantity of haddock sold in new
A policy may yield a Pareto superior outcome so long as the gains to those who benefit are greater than the losses to those who are worse off.
Give an example of a monopoly, an oligopoly, and a cartel. Describe the welfare effects of monopolies and oligopolies.
Think a small open economy with a fixed exchange rate system. Assume there is a general expectation that central bank will revalue the domestic currency in the future
Presume that the economy is in long-run equilibrium. For each of the following two scenarios describe what happens to aggregate demand, price level, and output and illustrate your answer with a graph.
A.Based on the National Accounts, what policies would you implement to eliminate a NX
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