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The Technical Rate of Substitution between factors x2 and x1 is -3. If you desire to produce the same amount of output but cut your use of x1 by 4 units, how many more units of x2 will you need? Explain.
A fairer distribution of rewards may generate a higher average productive effort on the part of the population in that way enhancing efficiency.
Assume you have an asset which will pay 5,000 dollars at the end of each year forever. Then, if the interest rate is 5% per year, the value of the asset is
The market supply curve is the curve that summarizes:
The market for beer is perfectly competitive. The price of a barrel of beer is $40. Fine beers is a company that produces the beer and has a total cost funtion of TC = 480 + Q2. It also has a marginal cost given by MC = 2Q, where Q is barrels of beer..
After bad experiences with a flexible exchange rate, the small open economy of Rivendell decides to fix it exchange rate. Suppose the economy of Rivendell has reached the long run equilibrium. Is trade policy more effective under a flexible exchange ..
Finding the required interest rate Your parents will retire in 15 years. They currently have $270,000, and they think they will need $850,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any ad..
You are the manager for Herman Miller, a major manufacturer of office furniture. You recently hired an economist to work with the engineering and operation experts to estimate the production function for a particular line of office chairs. What is th..
The purchase cost of a copy machine is $5,000. Each year it costs $1500 on maintenance. After 10 years it will be scra pped for a salvage value of $800. What is the equivalent uniform annual cost (EUAC) of this copy machine with an annual interest ra..
Some healthcare providers are concerned with malpractice suits and are engaged in practicing "defensive medicine". You are expected to produce a report for your team to examine issue for investigation. What tools would be needed to further examine th..
How much would you pay today for the following coupon bond where the coupon is received once a year over the 5 year holding period. As always show all formulas, calculations and work for full credit. Define interest rate risk. Show using a numerical ..
You are a division manager at Toyota. If your marketing department estimates that the semi annual demand for the Highlander is Q=150,000-1.5P, what price should you charge in order to maximize revenues from sales of the Highlander?
With the aid of diagrams demonstrate that any effectve price controls in a market will reduce the actual quantity bought and sold in that market.
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