Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
This problem is based on the specific factors model. Consider the economy of the Shire that produces cereals and swords. Each industry employs Hobbits, but land is specific to the production of cereals, and metal is a specific factor in the sword industry. The amounts of land (L) and metal (M) are L=10,000 and M=400, while the population size of the Shire is 1,000 Hobbits. The production functions and the marginal products of Hobbits' labor are as follows: C = (HC)0.5(L)0.5, MPHC=0.5(L)0.5/(HC)0.5 S = (HS)0.5(M)0.5, MPHS=0.5(M)0.5/(HS)0.5 where C is the cereal output in pounds, S is the number of swords produced, and HC and HS are the numbers of Hobbits employed in the cereal and sword sectors, respectively.
(a) If the price of 1 pound of cereals is $10 and the price of a sword is $100, what is the wage rate paid to Hobbits in the Shire? How many Hobbits work in the cereal sector? In sword sector?
(b) Because of the War of the Ring, the price of a sword went up to $150. Calculate new wage and employment level in each sector. (c) Do Hobbits gain or lose if the price of a sword goes up to $150? (To answer the question, calculate their real wages before and after the price change).
Suppose that the car manufacturer allows the car dealer to return all unsold cars at the end of a recessionary year. What is the car dealer's profit in a growth year and in a recession? What is their expected profit?
What are the needs of big companies presently. Do you think it is paying higher salary so people will be more motivated.
Write a short explanation of the article using one of the following economic models: GDP, AD & AS or circular flow of income and describe the economic situation in the UAE based on the article.
If my income increases by 10%, then quantity of public transportation demanded drops by 5%. I can say that income elasticity of my demand for public transportation is negative and that public transportation is a normal good. If the demand for chee..
Could a labor union or a minimum salary law efficiently help to raise wages.
Do such technological advances contradict the law of diminishing marginal returns
Consumption of apples drops from 30 pounds of apples a month to 21 pounds of apples.
Provide an economic profile of the Airline industry. Include an industry profile, Industry size data and current developments and trends within the industry.
Acme is sole supplier of security systems in product market and sole employer of locksmiths in the labor market. The demand curve for security systems is given by P=100-Q.
Suppose Acme decides that instead of cutting the wholesale price of the CD players it will offer a $50 rebate to the consumer (that is, the wholesale price is $200.
Matt and Johnny both purchase pop and chips at the same convenience store. They have different tastes for pop and chips, so Matt buys 3 cans of pop and 10 bags of chips whereas Johnny buys 15 cans of pop and 2 bags of chips.
Draw a graph of the Batman family's supply of loanable funds curve fro 1999. Show the influence of this change on the Batman's supply of loanable funds curve.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd