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Suppose at current factor prices a country's manufactures use 60 hours of labor for each acre of land and food is produced using only fifteen hours of labor per acre of land. If the economy's total resources are 1800 hours of labor and 180 acres of land, how much labor and land are allocated to manufacture and food production respectively?If the labor supply grows 50%,what happens to the allocation?
Compute and interpret the compensating and equivalent variations for this tax.
Nintendo and Sony Playstation are each planning to introduce one new game into the market. Each is considering three different kinds of games: an urban action game like Grand Theft Auto, an adventure game like Tomb Raiders, or a strategy game like..
Restaurant Marketing Services, offers affinity card marketing and monitoring systems to fine dining establishments nationwide. Fixed expenses are $600,000 a year.
What is your marginal revenue and marginal cost functions? To maximize profits, how much should you produce at plant 1? At plant 2? What is the price that maximizes profits?
Determine how European Union got into its current economic problems. Explain how did they get into these problems, how serious are problems and how will they realistically solve their problems.
Tim buys 2 pizzas and sees 1 movie a week when he has $16 to spend. The price of a movie ticket $8, and the price of a pizza is $4. Draw Tim's budget line. If the price of a movie ticket falls to $4, describe how Tim's consumption possiblities cha..
Think an economy with following Cobb Douglas production function; Determine the equation describing the demand for labor in this economy?
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
Assume that Florida migrant workers are effectively unionized. What will be the impact of unionization on?
Suppose that the software market currently has only one firm operating - microhard. A new firm Newvell could enter the industry.
Explain how sensitive do you think your organization is to economic expansions upswings and contractions.
In addition, pi* is the central bank's target level of inflation , and b is some positive parameter. This rule states that the central bank raises the real interest rate above its long-run level when inflation is above its target and lower when it..
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