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Assume a firm's output is a function of capital, labor, and energy (E ) given by Q = AKα Lβ Eγ
(a) Show that this function is homogeneous and determine the degree of homo- geneity of the function.
(b) What should the relations between α, β, and γ be in order to have a constant returns to scale? Increasing or decreasing returns to scale?
economists use elasticity to measure consumer responsiveness to changes in the various determinants associated with
Presume a firm sells to senior citizens and others at a single price of $10. At this price it sells 10,000 units total (2,000 to seniors; 8,000 to others). It estimates that at the $10 price, seniors have an elasticity of -3 while others have an elas..
Economic Colleagues, first, pick one of the following: explain two effects of an open economy on monetary and fiscal policy, or evaluate the role banks play in world financial markets. Describe two problems with banks as international lenders ..
Intermediate Microeconomics - ONLY 2 QUESTIONS IN ONE HOUR1.Suppose the demand and supply for milk in the European Union (EU) is given byp = 126 - 0.4Qd and p = 6 + 0.1Qs,
a needy family of a mother and three children currently receives cash benefits that average 12 per day. the mother of
Imposition of stricter environmental protection laws.
Executives deal with a tremendous amount of dail stress dealing with politics in organizations - yet they do not suffer from job burn out. Some argue that their political skills save them. Research and find an article that discusses the specifi..
The day after Thanksgiving, I've already invested time and money in training you, and don't have time to train a replacement; you suddenly realize you're in a strong bargaining position, and threaten to quit unless I raise your salary.
The same as real money demand and real money supply.
The size of the labor force in a community is 800, and 720 of these folks are gainfully employed. In this community, 200 people over the age of 16 do not have a job and are not looking for work
Gina Picaretto is production manager at the Rich Manufacturing Company. Each year her unit buys up to 100,000 machine parts from Bhagat Incorpo- rated. The contract specifies that Rich will pay Bhagat its production costs plus a $5 markup (cost- p..
you have been hired to manage a small manufacturing facility whose cost and production data are given in the table
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