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1) A firm's marginal rate of technical substitution at
M P L/M P = 3, and the ratio of prices of labor and capital ,w/r, is 4.
a) Is the firm minimizing its cost? Why or Why not?
b) What can it do to improve its situation?
Illustrate what does this theory predict about the term structure of interest rates in terms of how the yield of long term bonds are related to yields on a sequence of 1 year bonds.
Why people demand for money? What are the two types of demand for money? What is equilibrium interest rate? Why supply of money is vertical?
The Capitalpoor Company is considering purchasing business machine for $100,000. An alternative is to rent it for $35,000 at the beginning of each year. The rental would include all repairs and services. Assuming an income tax rate of 25%, a straight..
q.hiro nakamura is ceo of the cola king bottling company a small regional producer operating in the pacific northwest.
Wally is an ordinary (one-price) monopoly supplier of widgets. True or False: If Wally’s customers could get together and offer him a one-time payment in exchange for being allowed to buy widgets at a competitive price, then both they and he could be..
Assume that the Demand curve is given as Q=250-5P and the supply curve as P=10+Q. What would be the price and quantity with perfectly competitive markets? What will happen to price and quantity if the government provides a specific subsidy of $1 per ..
Draw a supply and demand curve, label X & Y axis and show equilibrium. Show shortage and surplus and why they exist, add ceiling and floor, use examples and describe.
What are some of the central concepts involved in the discussion about the relationship between education, innovation, economic growth, and inequality?
In a one-shot game, the best outcome for both players always represents a Nash equilibrium. B. A sub-game perfect equilibrium occurs when each player is doing the best he can regardless of what the other player is doing. Each Nash equilibrium is a su..
Consider a large country importing good X in the international market. The country is large enough to influence the international price for good X. Let the initial international price of good X be $100, where the country imports 100 units and produce..
You decide to buy 500 shares of stock at a price of $70 and an initial margin of 55 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 25 percent?
What provision of U.S. trade law was used by President Barack Obama to apply a tariff on tires imported from China? Does this provision make it easier.
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