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Suppose that the price per unit of input A is 2 euros, the price per unit of input C is 10 euros and the price per unit of input K is 24 euros. What is the minimum cost of producing 40 units of output y for the firm if the firm’s production function is Y = min { A/4 ; 5C } + 2K?
What is a voluntary export restraint, and why would a country seek to have an importing country agree to one? Is it more or less costly to enforce in comparison to a tariff or quota?
The Pennsylvania Consumer Protection Agency (PCPA) investigates the marketing practices of Respond Now!, Inc. The PCPA serves a subpoena on Respond Now!, ordering the firm to provide certain business records, including its marketing agreements with o..
Use the following information for the next 10 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions. Assume that wages and prices are sticky and that we start at a long-run equilibrium. After..
Assume that the supply of low-skilled workers is fairly elastic, but the employers’ demand for such workers is fairly inelastic. If the policy goal is to expand employment for low-skilled workers, What if the policy goal is to raise wages for this gr..
Trans-Fat Corp. is setting up a small Twonky factory in Albany. Table 1 shows the hourly output in Twonkies associated with each level of employment. Define marginal product of labor. Explain why diminishing marginal productivity in an input occurs. ..
An industrial machine costing $14,000 will produce net cash savings of $5,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The compa..
What are the characteristics of a monoplolistic competitive market structure? What are the characteristics of an oligopoly market structure? Why is game theory used to explain oligopoly behavior? Explain the kinked-demand theory of oigopoly? How do m..
In the economic order quantity (EOQ) model, if the holding cost and the ordering cost both double, the value of Q* will:
Which of the following are true of renewable resources? Check all that apply.
What possible effect does investment in excess capacity by incumbents have in determining the extent to which investments by entrants are sunk?
Suppose the consumer/worker values two things: a consumption good C and leisure: Suppose that there are 24 hours in a day and the consumer/worker has a utility function U (C; `) = C0:5`0:5: How is this problem different from the standard utility maxi..
Even though the use of checks lower transaction costs when compared to the use of paper currency, it is unlikely that the use of paper or metallic currency will disappear entirely. Why?
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