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A company has 6800 dollars to invest, which must be divided between capital expenditures and labor. Each unit of labor costs the company 10 dollars, and each unit of capital costs 10 dollars. Therefore 10L+40K=6800, where L and K are the units of labor and capital, respectively. Production output is modeled by the Cobb-Douglas formula P=L^(0.8)K^(0.2). Find the values of L and K which maximize production.
L= ______
K= ______
Explain the unemployment rate in Tappania is higher now than is has been in 50 years. Can both of those statements be true at the same time.
An investment has just been made to purchase a small CNC lathe of $17,000. This CNC lathe will be used to make ornamental parts for sale. Receipts are estimated at $25,000 per year with costs running $20,000 per year, the salvage value is $3,000 at t..
In his discussion of post-WWII growth in France, Blanchard describes the effects of destruction of part of a nation's capital stock. Suppose that instead of a decline in the capital stock a country experiences a decline in N resulting from a plague t..
A Wartburg engineering student graduates with student loans in the amount of $41400 that have a repayment APR of 7.66%. How much will the annual payments be if they intend to pay off the loans in 14 years?
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.
The owner of a small car-rental service is trying to decide on the appropriate numbers of vehicles and mechanics to use in the business for the current level of operations. Assume that annual (leasing) cost per vehicle is $6,000 and the annual salary..
Compute US GDP using the income, expenditure and product approaches. Clearly show and explain all steps used for each approach. In particular, for each item that you add up, specify under which specific category it falls.
In a game with eight players, each player has x > 10 coins. Each player also chooses the number of coins to contribute to a 'common fund'. The remaining coins are deposited into a 'bank'. Formulate this as a simultaneous-move game, and find the total..
Unemployment is a more serious economic problem than inflation and it should be the focus of the Fed’s monetary policy.” Evaluate this statement and explain why the Fed’s primary policy goal is price stability.
What should Zelnick and Conroy do. Should BMG integrate. Should they continue to work with a wide array of technology partners.
Assume that a large open economy with a floating exchange rate is described in the short run by the equations: Calculate short-run equilibrium values of Y, r, C, I, CF, NX, e, private saving, public saving, and foreign saving.
"The extension of the public domain to include mines, quarries, oil wells, forests and water power.” As it happened, the political party had only limited success, with its Presidential candidates getting just 6 percent of the electoral vote.
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