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Suppose a firms production function is: q = L 0.5+K0.5. Assume that the price of labor is w = 1 and the price of capital is r = 1. Determine the firms cost function and its marginal cost. Now suppose that wage rises to w = 2. Determine again firms cost function and its marginal cost. Does this production function have increasing, decreasing, or constant returns to scale, and is it homogeneous.
The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs
The nation passes a law requiring all employers to give their employees 16 weeks of paid vacation each year. Prior to this law, employers were not legally required to give employees any paid vacation time.
the consumer price index was 190.7 in january of 2005 and it was 198.3 in january of 2006. therefore the rate of
Which of the following kinds of unemployment is the hardest to reduce?
Heidleman Industries is considering two types of materails for roofing its warehouses. EPDM is an elastomeric polymer synthesized from ethylene, propylene, and a small amount of diene monomer, compounded with carbon black processing oils and vario..
suppose a monopolist faces the following demand curvep 90 2q. marginal cost of production is constant and equal to 10
The output effect of an increase in the wage comes about because higher wages:
When prices change, the income effect and substituion effect both contribute to the impact on quantities consumed. Explain how both effect a consumers utility maxization.
according to the federal reserves federal open market committee 2011 the federal reserve controls the three tools of
Suppose that there is a cultural shift in America emphasizing the importance of saving money as opposed to current consumption. a.) Illustrate the impact on the interest rate in the market for loanable funds. What direction does the interest ra..
your economy is in full employment equilibrium. suddenly an improvement in technology moves the lras to the right. what
Consider a demand curve of the form qd=20-2p where qd is the quantity demanded of goods and p is the price o the good. also consider a supply curve of form
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