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A firm's technology for producing its output from labor (L) and capital (K) is Q =(?4LK + K^2) where |MRTSLK| =2K / 2L+K. The wage rate is $2 per unit of labor and the cost of capital is $5 per unit of capital. The firm is initially producing 30 units of output and capital is fixed in the short run. What are the short-run and long-run supply functions of the firm? (You may assume fixed costs are sunk in the short run.)
explain the concept of deadweight loss. as well as answer the questions why does taxing a product lead to deadweight
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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..
assume you are a manager of a large multinational enterprise mne from an industry of your own choosing. you have been
does the monopolist get efficiency in its production that is does it produce where mr mc? will society face the
A. calculate the price elasticity of demand between each pair of prices ($5.00 to $4.50, and so on). b. what happened to Ed as price falls? why does this occur? c. What factors affect Ed?
What is the relationship between ethical and legal issues? What role do external social pressures have in influencing organizational ethics? How might these issues be relevant to personal and organizational decisions?
Background questions to answer: Where does NSW get most of its natural gas supplies from up to now? What is happening to total domestic gas production in Australia?
The marketing team of Burton Snowboard is analyzing her demand for two types of snowboard – Professional and Standard models. At Thanksgiving sales, the Professional board is discounted from the original price of $1,000.
a retail store would like to use loss control techniques to manage their risk of theft. what could be done to lower the
The central coordination problems are focused primarily around the distribution of goods only, not the production of goods. Production possibility curves are generally bowed outward because marginal opportunity costs generally increase as more of an ..
describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage.
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