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A firm is producing optimally (maximizing profits) when the price level = $1. It pays a wage rate of $10 per hour to labor and rents capital for $8 per hour. It sells its product for $20 per unit. At its current production point we can assume that its marginal product of labor (MPL) equals:
Consider an example of a health care market and identify ways it differs from a perfectly competitive market. Do you think these deviations from a perfectly competitive market improves a consumers (ie; patients) economic standing? Why or why not?
Suppose nuclear power plants are banned in the U. S. What are the opportunity costs of this decision?
You have just arranged for a $1,780,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 8 percent, and it calls for monthly payments over the next 22 years. However, the loan has an eight-year balloon payment, me..
In 3-4 pages, discuss public interest, administrative responsibility and some of the recent ethical obligations confronting public administrators in their day to day decision making. Also examine the recent trend in privatizing government functions a..
Which of the following questions from investors is best answered from the Income Statement?
In the aggregate expenditures model, if aggregate expenditures exceed real GDP, the economy will:
Suppose that you have just purchased the security, and suddenly the market interest rate falls to 5%. What is the security worth?
The labor supply function is given by N=1000+12w and labor demand is N=2000-8w. Find the equilibrium level of employment and wage. Given existing technology and the capital stock, output is given by the function Y=100N. Does the function exhibit dimi..
In the production function Q = 10L1/2K1/2 calculate the slope of the isoquant when the entrepreneur is producing efficiently with 9 laborers and 16 units of capital. (Hint: The slope of the isoquant = the ratio of the marginal product of labor to the..
Carbon tax: Suppose the government imposes a carbon tax on oil production. Will this affect the supply or the demand for gasoline? Why? Which determinant of demand or supply is being affected?
q1. you are the proud owner of a baseball card store. suppose you sell 100.00 worth the baseball cards each day with
Review the following graph. If Mexico produces 300 million tons of food, it can produce _________ million units of clothing without specialization or trade. Each ton of food in Mexico has an opportunity cost of __________ units of clothing. image Cli..
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