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Q1. Consider a firm using a single variable input, labor and a single fixed input, capital. Please explain what will happen to total product, average product and marginal product curves when a) Capital is increased, and then b) labor is increased. Assume a) and b) occur independently.
Q2. Suppose the price of gasoline at the pump is $1 per gallon and that 1 million gallons are sold per month. A politician proposes to add a 10-cent tax to the price of gallon of gasoline. She says the tax will generate $100,000 tax revenues per month. What assumption is she making? Explain?
What is the opportunity cost of Josephine's trip to the wedding
Consider a small economy in which consumers buy only two goods pies and tarts. In order to compute the consumer price index for this economy for two or more consecutive years.
How do the GDP per capita change after accounting for price indices. Why is it important to use price index adjustments.
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
Why do monopolistic competitors have a tendency to advertise much more than perfectly competitive firms?
Find the output you should produce in order to maximize your expected profits so that you can then determine your expected profits accurately.
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
If Sammy refuses to contribute to the butterfly garden, he'll not be able to enjoy its benefits if it is built.
Listing different orderings and coalitions is not going to work for this problem because there are too many possibilities, excluding you can use different tools which we have discussed in class.
Explain a way that your family interactsin factor market and a way that it interactsin products market. Discuss how circular flow relates to current economic situations.
What steps can Congress and state legislatures take to alleviate a serious national shortage of skilled providers. Research suggests medical errors have been linked to inadequate staffing.
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
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