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Which do you believe is more important for a firm’s financial efficiency and success: economies of scale or the learning curve?
Explain and be specific, giving examples, not discussed in class or the textbook, where possible to support your answer.
Consider a country that produces shirts and autos. Shirts are produced with sewing machines (specific factor) and labor while autos are produced using robots (specific factor) and labor. Labor is mobile between industries. The country is initially..
Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay. If both play the strategy leave, then each gets a payoff of $300. For which values of C and/or D is the outcome (leave, leave) a Nash equilibrium?
Suppose that one firm is the only employer of a certain labor service (i.e., the firm is a monopsonist). Assume its MRPL is given by L= 11 w and the labor supply is L = W. What is the wage paid and the number of labor hours hired by the profit maximi..
Distinguish between the crowding-out effect also the Ricardo Barro effect. Elucidate how are the 2 effects related
Illustrate what is the marginal revenue product function. Assume which most workers in Pakistan work 48 hours per week also which there are four weeks in a month.
q.1. you must decide whether or not to introduce a new product. if you launch the fresh product your competitor will
In Chapter 11 you read about centralized and decentralized decision making. Between the two philosophies which do you feel works better and why? Feel free to include any experiences you have had under each atmosphere.
The manager of Green Chemical Co. has been informed that this year’s production target Q for organic fertilizer (in millions of tonnes) is 20. The manager is asked to allocate the production across the company’s two plants. How should the manager all..
On a specific plot of land, X = 20L1/2 ; where X is the level of output in bushels of wheat, and L is the number of workers hired. Assuming that each worker receives a real wage equal to 1 bushel of wheat, calculate the maximum rental value of the la..
Assume that labor supply and labor demand are described by the following equation -labor supply: L=5w -labor demand: L=110-0.5w where w=wage expressed in dollars per hour, and L(s) and L(d) are expressed in millions of workers. find the equilibrium w..
Is the client’s refusal to procure an audit of Internal Controls over Financial Reporting in violation of Sarbanes-Oxley? Why or why not?
If firms to act socially responsibly and consider the social marginal cost, what is the equilibrium price and quantity. How do the equilibrium prices and quantities in the two scenarios compare with each other? What is the economic intuition behind s..
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