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A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of server time per unit of machinery time.
a. Write down the isocost equation for the restaurant.
b. Determine whether the restaurant is minimizing its cost of production when the ratio of marginal products (capital to labor) is 12. If not, what adjustments are called for to improve the efficiency in resource use?
Digital technology, including new software developments is essential for many organizations to function in the modern world. Although there is a variety of technology available, there does not seem to be an industry standard. Select what you feel are..
The Federal Reserve may increase or decrease money supply depending on the economic condition. What policy instruments does the Fed use for the monetary policy?
Assume the longer the search goes, the lower price the consumer would pay for the good. Furthermore, assume there are diminishing returns to the search since it is harder to find even lower prices as the search continues; that is: p?(t) > 0. Without ..
After getting an A on your economics exam, you decide to go to your favourite Mexican restaurant to celebrate. You are having trouble deciding whether to order the chipotle chicken chimichanga or the cilantro seafood enchiladas. Use the rule of equal..
How will the unemployment rate during the current period compare with the natural rate of unemployment.
Find the following values for a lump sum assuming annual compounding: The future value of $500 invested at 8 percent for 1 year. The future value of $500 invested at 8 percent for 5 years. The present value of $500 to be received in 1 year when the o..
Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =8.89 %, Annual cash flow increases 29% each year, The first year value is $52 and the series is 8 yrs long starting at EOY 1.
Given the market for wheat in equilibrium, assume that the government imposes a price floor on wheat. Explain what happens to the market for wheat as a result of this action? Draw and graph to fully illustrate the situation.
Mirk Labs is a British pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the United States on Zatab (pronounced zay-tab), an allergy medication. What wholesale price will Mirk Labs set? How much Zatab will it produ..
For each of the following situations, find the consumer’s optimal bundle. Be sure to show your work. Also, for each case, draw the consumer’s budget constraint, indicate the optimal bundle on the graph, and accurately draw the indifference curve that..
Ceteris Paribus is latin for. An example of ordinal measure would be. Which slope(s) may a supply curve not have? The fact that as we consume more of good we enjoy each subsquent unit less (1st hot wing vs. hot wing) is an example of what theory?
Which of the following models are not generally the best to use when generating short-term forecasts?
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