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Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted by M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = m5 B5 and wants to produce 10 barrels of pale ale this week. If the wage of managers is $50 per hour and the wage of brewing assistants is $10 per hour, how many managers and brewing assistants should the firm hire (round to nearest whole number)? How does your answer change when the wage of manager’s decreases to $30 per hour and the wage of brewing assistants remain constant? Is this result consistent with your intuition? Solve analytically.
Assuming that prices are set competitively (i.e. set equal to MC of producing services), show in a supply-demand graph how we could measure the “efficiency loss” (or deadweight loss) associated with health care over-consumption
GM Company is considering opening a dealership in Germany, but is unsure if it can earn an 8% rate of return that is promised by an alternative investment (of similar risk). Identify and describe and three rate base misconceptions? Think of the “rate..
Historically, the focus of civil rights policy has been on which of the following groups?
jason likes to buy guitars and trumpets. his marginal utility of guitars is given by mug 7t0.310g0.3 and his marginal
Participate in a discussion with your classmates regarding how monetary policies affect our lives. Utilizing the knowledge that you have accumulated during our course, and by reading or watching the current news, determine the monetary policy issues ..
The Dallas Electronics Company is considering replacing an old, 1,000-pound-capacity industrial forklift truck. The truck has been used primarily to move goods from production machines into storage. Compare the after-tax EUAC of owning versus leasing..
Utilize economic theory to analyze the likely labor-marketplace effects of the growth in these awards, assuming that the wages in these jobs stay constant.
Which of the following are benefits of international trade? Which ones are correct?
Suppose that a change in the expected inflation rate leads supply and demand to adjust so that the expected real interest rate is unchanged at 3.0 percent.
Why might the U.S. have a comparative advantage in bioinformatics but not in manufacturing and steel making.
What microenvironment factors have affected Sony’s performance since 2000? What macro environmental factors have affected Sony’s performance during that period? What stands in the way of Sony’s success today?
Suppose that firms are NOT owned by consumers.than what is the value of that maximizes total consumer well-being?
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