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The firms has the production function Q(K,L)=30K^.67L^.33, where Q is the hours of edited footage. The wage is $25, and the rental rate of capital is $50. The firm wants to produce 3,000 units of output (video shorts) at the lowest possible cost. a. What ratio of capital to labor minimizes cost? b. How much capital and labor will you need to rent and hire in order to produce 3,000 units of output? c. What is the total cost of hiring these inputs? d. Graph the isocost and isoquant associated with this example. Clearly mark the optimal point. Include the quantity and cost on the isoquant and isocost.
The Fed's decided to maintain its low interest-rate target in the face of a rightward shift of theAD curve in the late 1960s which led to an inflationary equilibrium. Discuss the short-run and long-run costs and benefits of the Fed's other two op..
grand corp. issued 20000000 par value 10 convertible bonds at 99. if the bonds had not been convertible the companys
Consider a simple island economy where the sun is always gentle and warm and the breezes are cool. Let's call this island DanLand. There are four product markets in DanLand: coconuts, fish, textiles, and beer. Coconuts grow freely around D..
explain how the market economic system works to answer the fundamental economic questions. explain how this may differ
You can use monetary and fiscal policies to affect aggregate demand but you cannot affect aggregate supply in the short run. How would you respond to the following scenarios?1. A surprise increase in investment spending 2. Catastrophic floods that ..
your company wants to increase revenue and has asked you to work on a project to determine whether the demand for a
Do workers of monopolies get paid more compared to employees who do the similar work in other industries that are not monopolies?
Apply the substitution and income effects to the purchase of meat given the lower price. How is this related to the law of demand? Hint: use chicken as a substitute good in your discussion.
Evaluate the 3 goals of the Fed, which are price stability, full employment and economic growth. Which one do you think is the most important goal for the Fed to focus on right now? Also, what would be appropriate monetary policy for the Fed to he..
Farmer Bean is selling green beans in a purely competitive market. His output is $1,400 units, of which each has a marginal revenue of $2.50. What is his average revenue?
Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true? What are the equilibrium price and quantity of tickets?
Compute output, marginal cost, average cost, price, and profit at the average cost-minimizing activity level. Compute these values at the profit-maximizing activity level.
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