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The production function is given by Q = LK. With w = 1 and r = 1.
a. Derive the equation for the firm's long-run total cost curve as a function of output Q.
b. Solve the firm's short-run cost-minimization problem when capital is fixed at K = 5. Derive the equation for the firm's short-run total cost curve as a function of quantity Q and graph it together with the long-run total cost curve.
A product is expected to earn 25,000 at the end of the first year, and to decrease 500 subsequent year. This product is going to be in service five years. The market value at the end of five years is 5,000. At an interest rate of return of 5%,..
the subway fare in your town has just been increased from a current level of 50 cents to 1.00 per ride. as a result the
As more potentially life-saving, but expensive drugs come to market, patients and insurance companies have difficult decisions to make. While in theory people would pay anything to save their own life or that of a family member, the efficacy of so..
Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250, and their desire to purchase does not vary with time. Ignore the time value of money a..
Assume you run a pizza store and currently have two workers. If you hire a third worker, your output of pizzas per day rises from 55 to 65.
Analyze the balance-of-payment structure and make at least one recommendation for reducing errors and/or omissions. Explain your reasoning for making the recommendation you did.
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In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there a probably ..
Tom can produce 40 balls per hour or 4 bats per hour. Tessa can produce 80 balls per hour or 4 bats per hour.a. calculate Tom's opportunity cost of producing a ball. b. calculate Tessa's opportunity cost of producing a ball.
Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of electricity serving portions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks
the global business environment has intensified pressure for companies to utilize their resources in new ways. one
suppose that the production function for a commodity is given by q 10radiclkwhere q is the quantity of output l is the
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