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The law of diminishing marginal returns states that eventually the marginal product of an input will tend to fall as more input is added. Describe real-life scenarios, explaining why this is likely to happen. For example, imagine a backyard garden of fixed size and all other inputs except labor also fixed ; will adding a worker increase your output? Will adding another increase output by as much? another?
If the government imposes a ceiling of $6 on the price of the firm's product, Illustrate what output will the firm produce also Illustrate what will be total profits.
A corporation has ten employees, all of whom want a more pleasant work environment. Accordingly, they are considering removing litter from the grounds of plant.
Mike’s Mechanical Men produces radio controlled robots. If its average costs of production are $25, its fixed costs equal $2,500, and it charges $75 per robot, how much revenue must be generated to earn a profit of $5,000?
Does the concept of technological efficiency permit us to determine at which point on an isoquant a firm should operate.
Assuming that under cost controls rationing is as inefficient as possible while under the quota, the allocation is as inefficient as possible.
How might it be possible for the unemployment rate to still increase? Provide an example, i.e., provide a scenario with numbers, to support your answer
what will happen to the price level and output? Using the AS/AD model, demonstrate your predictions graphically. what policy might you suggest to the government?
The loss to consumers can be decomposed into three pieces: a transfer to domestic producers, a transfer to the government, and a deadweight loss. Use your diagram to identify these three pieces.
Construct a choice table for interest rates from 0% to 100%. If the MARR is 10%, which alternative should be selected? Can you please explain how to solve the problem on excel
Illustrate what is the WTO. Briefly describe one trade topic identified by the WTO on the website. And, what did you learn from the Web site about the WTO.
How great an open market purchase or sale of securities should the central bank undertake to restore the original interest rate.
Illustrate what risks do you face. Upon inquiry at your bank, you find that the forward price for a September contract to buy dollars is 10SKr per dollar. How might you hedge your exchange-rate risk for the first year.
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