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Suppose a firm with a production function Q = KL (where MPL = K and MPK = L) is producing 125 units of output by using 5 workers and 25 units of capital. The wage rate (W) per worker is $10 and the rental rate per unit of capital (R) is $2. What happens to the firm's long-run average total cost if it decreases output to 45 units?
Risk-averse people cut their risks by:
Would the company's R&D employees learn to appreciate the possibility that ideas from external environments could enrich and inspire internal research, thereby avoiding the "not invented here" syndrome?
Suppose that the price of good x rises and price of good Y falls in such a way that the consumer's new optimal consumption bundle lies on the same indifference curse as his old bundle. Compare the quantities demanded between the old and new bundle..
Discuss the model or economic theory that relates to the issue presented in the news article. Discuss what economic theory states and predicts about the issue presented in the news article.
European markets for DVDs There are several markets in which a "hardware-software" linkage is important. This difficulty examines supply and demand forces for an emerging market,
How the Balance Sheet for Bank Z would look like after it loans out its Money to Mr. Chansa and suppose Mr. Chansa Deposit his Money into Bank-B, How would the T- Balance sheet look like for Bank- B
Draw a graph to analyse the effects of 40 per cent tariff rate in Korea on the price, domestic supply of and demand for beef, and compare the situation with no tariff case.
For simplicity, let's assume that every household has a marginal propensity to consume (MPC) of 0.75. If the government implements a fiscal policy involving its purchases of goods and services
Draw a supply and demand graph to assist in explaining the increase in the price of chain saws after Hurricane Andrew.
Julio receives utility from consuming food (F) and clothing (C) as given by the utility function u(F,C) = FC In addition, the price of food is $2 per unit, the price of clothing is $10 per unit, and Julio"s weekly income is $50.
Assume the reserve ratio is 20%.If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $1000 deposit?
Draw a supply/demand diagram of the market for "loan able funds" in the U.S. Use the "interest rate" as the "price" of loan able funds on your diagram. Show the effects of a rise in the expected inflation rate on your diagram.
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