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Derive the labor demand functions that are associated with the two production functions given below. The level of output is denoted by q. The two inputs are labor (h) and capital (k). You should derive the function that relates the level of labor utilized at each possible output level, q > 0. We will assume that the price per unit of capital is r = 1, that the wage rate is w = 2.
(a) min{2h, 3k}
(b) max{3h,k}
A company is planning a plant expansion that is expected to cost $10 million. How much must the company set aside now in a lumps-sum investment to have the money in 2 years? Capital funds earn interest at a rate of 12% per year, compounded continuous..
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The elasticity of demand for alcoholic beverages is basically inelastic and when the government (State of Federal) increases taxes, the government tax revenue increases.
Woodonia, the world's leading exporter of bespoke wooden furniture, produces the furniture at a per-unit cost of Q = P + 60 and the market demand is Q = 120 - P. Find and draw the domestic equilibrium. Find and draw the socially optimal equilibrium.
calculate velocity of money when price level is 10, national quantity of output is $200 billion and money supply is $250 billion Answer must be in detail Explain how Explain how you got answer.
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Short run refers to a period of time during which:
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Briefly explain why a change in the price of coconuts does not change the demand for coconuts and a change in the supply of coconuts does not affect the demand for coconuts.
Suppose prices were p1 = p2 = 1 and income was 10. In the next year the price of good 1 doubled. The price of good 2 stayed the same. Calculate the CPI income adjustment. Calculate the new optimal bundle. And lastly, calculate the amount of the subst..
List and explain the characteristics of oligopoly and compare them to the characteristics of the other 3 market structures. i. The oligopoly market structure is one of the most significant types in our economy. Please discuss the oligopoly market str..
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