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Explain why marginal cost curves slope downward as firms increase their output from "0”; but, eventually, as output continues to expand, marginal cost curves slope upward and ultimately become vertical.
What is the profit-maximizing price and output level? Solve this algebraically for equilibrium P and Q and also plot the MC, D and MR curves and illustrate the equilibrium point.
Explain how labor market equilibrium is affected by the supply also demand of labor.
The Constant Elasticity of Substitution function. Determine the returns to scale of this production function. Find σ, the elasticity of substitution. Express K/L as a function of w/r. How does the relationship between K/L and w/r change when ρ chang..
q1. assume you are the chief economic advisor to the president of the united states and the president has asked you to
Assume there is a labor force of 16 workers at an isolated site. During boom the firm faces a demand curve of P=100-Q. During recession it faces a curve of 80-2Q. Like likelihoods of Boom and Recession are 60% and 40%, respectively. How many workers ..
Positive economics deals with
You are planning for retirement, and would like to have $1,000,000 in the bank when you turn 65. (Assume that you just barely turned 25). How much should you deposit each month into an account earning 6% nominal interest per year, compounded monthly,..
Describe the characteristics of optimal contracts in principal-agent problems when the agent (manager) is risk neutral.
The market interest rate increases to 10%. IN the afternoon at what price would your bond sell in the secondary market.
An office building should last 60 years, but this owner will sell it at 20 years for 40% of its construction cost. For the first 20 years it can be leased as Class A space, which is all this owner operates. When the building is sold, the land’s cost ..
Illustrate what are the limitation of the equilibrium level of national income determined in Keynesian cross model.
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