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A producer produces good y using inputs x1 and x2 according to the production function y = x1^(alpha)x2^(beta) where alpha + beta <1. The factor prices are w1 and w2 (for input 1 and 2). The producer can sell as much as he wants at unit price p.
1) Derive the cost function c (x, y)
2) What is the producer's optimal profit as a function of (w1,w2, p)?
1 why have economic analyses of clinical and administrative innovations become more important?2 a clinic finds that by
If you travel around the world, you will see tremendous variation inliving standards of the people. The world's poor countrieshave average levels of income per person, that are less thanone-tenth the average levels in the world's rich countries
1. suppose the marginal costs of reading are consatnt and the marginal benefits of reading declineover time. initially
Suppose that the average prices of refrigerators have fallen over the past few years, yet the refrigerator companies have offered more and more of them for sale. Does this mean that the supply curve for refrigerators is downward sloping?
1. the price of french fries falls by 10 per cent and quantity of french fries demanded increases by 12 per cent. we
important information about own price elasticitylocal credit union ab is researching a fee increase for non-customers
A firm has a net monetary liability balance of $10,000 on January 1, 2001. During the first third of the year, the balance decreased to $7,500. During the second third of the year, the balance increased to $12,500.
When measuring the GDP for a particular year, why do economist include only final goods? Why don't they include the value of stocks and bonds sold?
How does the market adjust in the long run when firms are earning short-run economic profits? How does this affect the short-run supply curve?
What are the risks and opportunities of the strategies followed by Pepsi? of Coca Cola? 3.) How would you respond to Coca-Cola's change in sales policy? How would you ensure Pepsi's board that this response will allow you to remain competitive and..
Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the..
an investor wants to earn a yield of 9 from a 10000 bond with a coupon rate of 6 payable semiannually. the bonds life
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