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According to the chief engineer at the Zodiac Company, Q = AL (alpha symbol) K (beta symbol) , where Q is the output rate, L is the rate of labor input, and K is the rate of capital input. Statistical analysis indicates that (alpha) = 0:8 and (beta) = 0:3. The rm's owner claims the plant has increasing returns to scale. a.Is the owner correct? b.If were 0.2 rather than 0.3, would she be correct? c.Does output per unit of labor depend only onand ? Why or why not?
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
Research and describe the internal and external environments of 2 real world companies using an environmental scan. Determine what competitive advantages each company has and what strategies each company is using.Hoe does each company create value an..
If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is:
Assume which the United States presently both produces kumquats and imports them.
What is the resulting deadweight loss relative to the competitive outcome. Compute the Lerner Index for the monopoly described in the question above.
What impact if any has the policy of 'Quantitative Easing' had on the United States aggregate demand/aggregate supply curves?
Estimate the macroeconomic implications and microeconomic consequences of a monopolistically competitive firm or an oligopoly firm filing for bankruptcy.
Suppose disposable income increases by $2,000. As a result, consumption increases by $1,500. Answer the following questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percentage. The increase in savi..
The Center for Medicare and Medical Services reported that there were 295,000 appeals for hospitalization and other Part A Medicare service. Compute the probability that none of the appeals will be successful. Compute the probability that exactly one..
The multiplier, or the change in equilibrium GDP that will occur per any change in spending, can be determined by calculating the fraction of any change in income that survives all of the leakages and goes on to start the next round of spending.
Suppose that in 2013, geologists discover large reserves of oil under the tundra in Alaska. These reserves have a market value estimated at $50 billion at current oil prices. Oil companies spend $1 billion to begin exploratory pumping during that sam..
The manager of a branch of a lical bank wanted to estimate the averageamount held in savings account by depositors at the bank. A random sample of 25 selected and the sample mean was$4,750 and a standard deviation of $1,200. Construct and explain a 9..
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