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w=10, r=25. The price of output is constant at $50. The production function is f(L,K) = L^.5K^.5.
If the current capital stock is fixed at 1600 units, what is L* in the short run? How much profit will the firmearn?
2. when Q = 10(LK)^0.5, w = 80, r = 20. what is (L*,K*) to produce 800 units?
In a closed (no foreign sector)mixed economy with stable prices if we assume that consumumption and investment spending do not depend on the interest rate,can we conclude
Suppose that aggregate demand increases such that the amount of real output demanded rises by $7 billion at each price level. By what percentage will the price level increase? Will this inflation be demand-pull inflation or will it be cost-push infla..
Which input bundle represents efficient production of 100 units of output if the rental paid to capital is $25 and the wage paid to labor is $50? Round any decimals to the nearest hundredth. Derive the firm's cost function using the rental an..
Suppose the two countries are not trading and that both desire to have equal numbers of feet of timber and baskets of fruit. How would they allocate workers to the two sectors?
customer service level, even if that means some products will occasionally be out of stock, if it gets products at a lower price. For its large retail hardware customers (like Home Depot), United regularly ships smaller orders directly to individu..
Let us assume you and ten of your friends are going to open and invest in a business. You do not want to pay double taxation on the profits. You want a type of ownership where profits must be distributed based on how much each person has invested ..
Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..
Find an expression for average costs (AC) and average variable costs (AVC). Graph them together with marginal costs and find the firm's short run supply curve. Is the whole curve relevant to the long run?
Suppose a monopolist producing Q units of output faces the demand curve P = 20 - Q. Its total cost when producing Q units of output is TC = F + Q2, where F is a fixed cost. The marginal cost is MC = 2Q.
Set up the consumer's utility maximization problem for prices pi, p2 and income m and how can this person be better off than by consuming the bundle
Discuss the difference between monopolistic competition, and perfect competition market models and also provide examples from the real life.
Merchant banking refers to:Banking services that are only available to retail merchants.Banking services that are only available to business but not the general public.
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