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In a small European country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $300. Based on this information, what is the slope of the per-worker production function in this range?
At Roy's Music Shack, when the price of CDs is $13,500 are demanded. When the price of CDs is $14,200 are demanded. Using the averages of the two and quantities, the price elasticity of demand for CDs is?
Estimate what would happen to the volume of services and the expected revenue to the practice, should the area's health insurers increase patient cost sharing from 20% to 30% of this charge - Calculate the Lerner index and compare it with the Ler..
Consider the following production function for combination of capital and labor, Q=f(L,K)=L^0.4*K^0.5. Is this function homogeneous in K and L?In the long-run, does it exhibit increasing, constant, or decreasing returns to scale?
If Jose's utility function is U(q1,q2) = q1 + A*(q1)^a)(q2^b)+q2, what is his marginal utility from q2? What is his marginal rate of substitution between these two goods?
Consider the following production function: Q = K L . Explain the special characteristics of this production function. How is it different from a Linear production function? How is it different from a Leontief production function?
Why do you think the United States has evolved with so many banks while the European countries and Japan have a relatively smaller number of large banks?
Assume that software purchases by businesses are treated as expenses, as they were before November 1999. Calculate GDP using three different approaches: expenditure approach, income approach, and product approach.
A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..
Describe the economic situations when your position can be successfully implemented and when it may be doomed to failure.
Globalization has changed world economy in many ways. One result of globalization is off shoring which has had its share of economic impacts on domestic employment as well as world employment.
Brian and Allen are thirty years old with identical academic records and job history. Both currently have jobs paying $40,000 each year.
Provide a report to management of the firm as to whether or not it should continue to operate at a loss?
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