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Suppose that the production function for floppy disks is given by Q = KL2 L3 where Q is the number of disks produced per year, K is machine-hours of capital, and L is man-hours of labor flow of capital service. a) Suppose K=600. Find the total product function and graph it over the range L=0 to L=500. Then sketch the graph of the average and marginal product function. At what level of labor L does the average product curve appear to reach its maximum? At what level does the marginal product curve appear to reach its maximum? b) Replicate the analysis in (a) for the case in which K=1200. c) When either K=600 or K=1200, does the total product function have a range of increasing marginal returns?
The company uses an effective income tax rate of 40%, and the after-tax MARR of 15% per year. What is the approximated value of the company's before-tax MARR?
Find out the optimal price-quantity if the firm is not able to price discriminate.
q1. one proposal to slow the growth in consumption of fossil fuels is the imposition of higher taxes. how would that
"The Assistant Secretary for Time Travel recommends that the bureau choose the socially optimal price, the price necessary for efficient allocation of resources. Which price is required for efficient allocation of resources.
Suppose you decide to elicit high CEO effort when and if bad luck occurs by paying bonus for $500 million outcomes. Illustrate what criticism can you see with this incentive contract plan.
q.in a particular monopoly the demand equation is given by yp 5p1. what is the price elasticity of demand?2. what is
Jerry bought a house for $400,000 and made an $80,000 down payment. He obtained a 30-year loan for the remaining amount. Payments were made monthly. the nominal annual interest rate was 6% after 10 years (120 payments) he sold the house and paid the ..
Elucidate the multiplier concept as it applies in this case. Explain what are the qualifications and limitations of the multiplier model.
Illustrate that an increase in government spending can improve consumer welfare.
following weekly demand and short-run cost functions:VC = 20Q+0.006665 Q2 with MC=20 + 0.01333Q and FC = $5,000
Explain what it would mean for you to move upward and to the left along your personal PPF. What kinds of adjustments would you have to make in your life to make such a movement along the frontier?
12. mrs. smith is operating a firm in a competitive market. the market price is 6.50. at her profit-maximizing level of
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