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A firm uses capital to produce revenue. The marginal revenue from the first 5 units of capital is as follows: 1st unit has MR 2.30, 2nd unit has MR 1.9, 3rd unit has MR 1.70, 4th unit has MR 1.35, and 5th unit has MR 1.15. If the interest rate is 50%, what is the optimal amount of capital for this firm to borrow?
Calculate the growth rate of nominal GDP and constant GDP for the period 1985-1995. Calculate the growth rate of nominal GDP and constant GDP per capita for the period 1985-1995. What is the current GNP in 1985 and 1995? calculate the growth rate of ..
Whose interests should be the paramount concern of government trade policy - the interests of producers (businesses and their employees) or those of consumers? Given the arguments relating to the new trade theory and strategic trade policy, what kind..
The Federal Reserve System is structured in such a way as to insulate monetary policy from the political pressures characteristic of the rest of our political system of representative democracy.” Do you agree or disagree with this quote? Explain your..
If R and F both have 12 hours of labor that they can give to catching fish or goats, and R requires 1 hour to catch a fish and 2 hours to catch a goat, F requires 6 hours to catch a fish and 3 hours to catch a goat. They are able to trade at Pf=Pg..
Suppose that in voting fraud around the country the government is forced to spend billions of dollars in legal fees. Analyze the effects of such a massive increase in government spending in both the classical and fixed price Keynesian models when the..
Evaluate the performance of using the composite index of leading indicators in forecasting the recession in the U.S. (you may need to search additional information for answering this question).
Average visits per week equal 640 when the copy is $40 and equal 360 when the copayment is $60. Calculate the price elasticity using 360 and $60 as the denominators for percentage change calculations.
Portugal is a collectism society whereas the US is a individualistic society, How might these differences in culture affect international tourism between the two countires?
Suppose the government sets a controlled price below the market clearing price for a commodity. Draw a diagram and use the idea of a maximum buying price to explain whether the total price paid by the buyers will end up lower or higher than before.
suppose that the carnival and the circus have both come to town and are both o?ering free admission. you have 6 free
In sharp contrast to the oil shocks of the 1970’s, the price of oil substantially declined in the early part of the 1990’s. Can this explain the good performance of both inflation and unemployment in the 1990’s? What has been the probably effect on t..
For each of the following cost-output relationship, describe the shape (U-shape, Decrease, increase, constant) of the average total cost and marginal cost function (C=total cost, Q = output).
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