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For each of the following production functions, determine the returns to scale. Check to see whether diminishing returns for labor and capital exist for each function (Q = quantity, L = labor, K = capital) a. Q = 3L + 2K b. Q = (2L + 2K)1/2 c. Q = 3LK2 d. Q = L1/2K1/2 = (LK)1/2 e. Q = 4L1/2 + 4K
Suppose the cost of producing a 30 second commercial for television is $100,000. If airtime on the evening news costs $200,000 and is viewed by 5 million people, what is the advertising cost per potential customer?
how the United States and the other country differ. Which of the two countries has better prospects for the future and why? Provide a reasoned opinion.
The theory of new Keynesian inflation dynamics suggests that a fall in aggregate demand would
Topics about scarcity, production and demand versus supply. What are acceptable levels of production in using raw materials such as natural resources? At what level does supply meet demand? How does an economic set the equilibrium price? At what poin..
Calculate the variance of x=(6, 8, 10 ) BY HAND, showing all the necessary calculations. Calculate the variance of x=( 1, 4, 2, 5 ) BY HAND, showing all the necessary calculations. Calculate the standard deviation of x=( 1, 4, 2, 5 ) BY HAND, showing..
You plan to buy a common stock and hold it for one year. You expect to receive both $1.50 from dividends and $26 from the sale of the stock at the end of the year. If you wanted to earn a 15 percent rate of return, what is the maximum price you would..
Use demand and supply diagrams to elucidate what happened in anchovy,soybean, and cattle markets. Indicate which curves shifted in each instance and show the effects on the equilibrium price and quantity in each market.
You produce goods in a competitive market. You discover that the marginal cost of the last good you produced is the same as the market price for the good. You should:
If a firm can sell its product for more than its fixed costs, but not for more than its totals costs:
Assume Microsoft chooses to produce 80 million copies of the software per year and sells copies of the software to retailers at $199 per copy.
All parties make a single bid. But do not disclose the bid to peers. The organizer chooses the maximum (or minimum) bid as the winner. What are benefits of such a system as opposed to normal auction where bidders openly declare the bids and keep upda..
What are the differences among horizontal, vertical, and conglomerate mergers? What does the U.S. government hope to achieve through the use of its antitrust policy
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