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Consider the production function Q = K0.5L0.5 where K is capital and L is labor. Suppose capital is fixed at 400 in the short-run. What is the short-run total product?
Suppose the domestic and foreign interest rates are both initially equal to 4%. Now suppose the foreign interest rate rises to 6%. Explain what effect this will have on the exchange rate. Also explain what must occur for the interest parity condit..
Assume you were given the following data for an economy without government spending, exports, or income. C is desired consumption, I is desired investment,
Tickets cost $5 to play, and you get to pick a number between 1 and 20. If you guess right, you win $100. If you guess wrong, you win nothing. In either case, you must pay the $5 to play. What is your expected payoff if you play this game
What output strategies might U.S. companies implement to remain profitable when competing with international companies? How do market demand, costs, pricing, and competition impact these output strategies?
Explain why the price elasticity of demand for turkeys is likely to be lower but the price elasticity of demand for turkeys at a PARTICULAR STORE is likely to be greater at thanksgiving than at other times of the year
Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.
Suppose that the government levies a $1.50 tax on a chocolate bar. What is the change in the quantity of chocolate bars bought, who pays most of the tax, and what is the deadweight loss?
Explain why the following statement is false: If a firm's output is increasing and marginal cost (change in total cost divided by change in quantity) is rising, then average total cost (TC/Q) must be rising also.
Analyze the data you have selected to determine how to use them to make appropriate economic decisions for an organization. As you are analyzing the data, apply econometrics methods (linear regression, statistical mathematics, nonlinear regression..
It turns out that the city of Tucson cannot enforce the minimum wage very well and they cannot tell employers whom to hire. An underground market for jobs develops. The city has limited resources for enforcement, so that they can only catch employ..
Disney, Lucas film and Paramount studios were sued by the Institute of Archeology of Belize for using the likeness of ---------------------- in the movie ----------------------------.
What is the firm's cost function when the cost of pollution certificates is included? What is the firm's marginal cost function when the cost of pollution certificates is included? Derive the firm's supply function.
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