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Suppose that the production function faced by a baseball footwear producer i given by Q=4K^0.5L^0.5, where MPk=2K^-0.5L^0.5 and MPl=2K^0.5L^-0.5. Do both labor and capital display diminishing marginal products? Does the production function display a diminishing marginal rate of technical substitution? (MRTS(subscript)LK)?
Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1
You decide in May that the coming summer's corn crop will be much larger and the fall corn price consequently much lower than most people expect. To act on your beliefs, should you buy or should you sell December con futures?
Which of the following is the best example of a monopoly?
Find the effective interest rate per quarter at a nominal rate of 8% compounded (a) quarterly, (b) monthly, (c) weekly, (d) daily and (e) continuously.
Assume that you are going to start a small business of your own. Describe the business and, utilizing the concepts of this unit and the earlier units, discuss: What costs you would incur;
q.suppose a factory can produce a shirt for the equivalent cost of 2 loaves of bread and a household can produce a
I have a production function Q=f(L,K)= 2L+4K. The cost of each unit of L labor is 10 and the cost of each unit of capital K is 18. Assume the gift boxes are currently selling for $4 each. Determine the profit-maximizing quantity Q for this company. A..
Suppose that this year's money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. What is the price level? What is the velocity of money?
Inflation is not the result but the cause of monetary emission. As there's inflation (because of other reasons not important here), people need more money and the central bank needs to print more money. How can you argue against that? As it seems to ..
You are considering investing in a start up project at a cost of $100,000. you expect the project to return $500,000 to you at the end of seven years. Given the risk of this project, your cost of capital is 20%. What is the npv for this project?
“In a situation of increasing opportunity costs, trade can be beneficial to both countries if they have identical tastes. However, trade cannot be beneficial to either country if the countries have identical PPFs” Is this statement correct of incorre..
Who of the following is not in the Bureau of Labor Statistics' "employed" category?
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