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1: In a Cobb-Douglas production function with constant returns to scale for a firm that produces using only labor and capital, if the share of income that goes to labor is 42%, what does alpha equal?
Enter your number in decimal form as opposed to percentage form, rounded to two decimal places - use only numbers, a decimal point, and/or a negative sign as needed.
2: Consider the production function graphed with output on the vertical axis and labor on the horizontal axis. Which of the following is true about this production function?
A - It shows that the more labor we add the lower the amount of output we make.
B - Its slope is the average product of labor.
C - Its slope gets flatter as more labor is added.
D - It shows the effect on output of increasing the materials that workers have to produce with.
If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if the price of shoes decreased. consumer incomes increased. Use the graph to visualize the changes.
Which of the following determinants of marginal productivity cannot be acquired by someone who wants to increase future productivity? The effects of the national health care program on labor markets will. One reason some economists are critical of th..
A project has cash flows of -$12,000 in Year 1, +$5000 in Years 2 and 3, -$2000 in Year 4, and +$6000 in Years 5 and 6. Find the interest rate of 12%. Find the interest rate that gives a net present value of zero.
Is there much research into the long term impacts of government fiscal contractions. I have heard about 2nd generation unemployed as a result of Thatcher's policies but that is very much anecdotal. What does the literature have to say on the matter?
q.you possess the following information about ipath. the price elasticity of demand for ipath is -2.5 the cross price
In the specific-factors model, an increase in the price of the manufactured good will cause:
Let Y represent income and L represent hours of leisure. Mike's utility for income and leisure is U(Y,L) = Y x L so that marginal utility of leisure = Y and the marginal utility of income = L. Total hours available for leisure and work in any given w..
The New Lombard Street, Merhling (2011) quotes Fischer Black(1970) in saying: Thus a long term corporate bond could actually be sold to three separate persons. How does the separation of risk work? What financial instruments are needed? Give an expla..
If Ann's marginal rate of substitute of X for Y is 5 - that is, MUx / MUy = 5 - the price of X is $9 and the price of Y is $2 she is spending too much of her income on Y. Do you agree or disagree?
Elucidate the effects of an increase in business investment on the short-run macroeconomic equilibrium.
In the absence of a binding and enforceable agreement, determine the dominant strategy for AMC. c. Determine the dominant strategy for SAMI. d. If the two firms can enter into a binding and enforceable agreement, determine the strategy that each fi..
If the table represents the demand faced by a monopoly firm, then what is that firm's marginal revenue as it increases output from 1300 units to 2200 units - Is demand elastic or inelastic in the $6-$8 price range? How do you know?
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