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Suppose an economy is characterized by the following equations:Price setting: P = (1+ m)(W / A). Wage setting: W = AePe (1- u)(a.) Solve for the unemployment rate if Pe = P but Ae does not necessarily equal A . Explainthe effects of Ae / A on the unemployment rate
Economists estimate that on weekends the demand for your product is much higher than on the weekdays (monday-wednesday). On weekends. the inverse demand curve for a typical customer is P= 10 - 0.001Q; on weekdays, it is P=5- 0.01Q.
Your aunt has asked you to help her determine the date on which she must settle a debt. She borrowed $4500 on July 1, 2009, and $7500 on June 1, 2010, from the same lender. The interest rate is 3.24 percent compounded semiannually.
Suppose that the home currency start to appreciate against other currencies, this should the current account balance, other things equal
Given the following production function with two inputs, Capital (K) and Labor (L), whose input prices are $1 each. Suppose the company needed to produce 50 units. What would be the cost minimizing combination of capital and labor needed
The kinked-demand schedule that an oligopolist believes confronts the firm is given in the table below. Compute the oligopolist's total revenue at each of the nine prices, and enter these figures in the table. Compute marginal revenue for each uni..
Modifying an assembly line has a first cost of $80,000 and its salvage value is $0. The firm's interet rate is 9%. The savings shown in the table depend on whether the assembly line runs one, two or three shifts, and on whether the product is made..
A local restaurateur whose business had been profitable for many years recently purchased a liquor license, giving her a legal right to sell beer, wine and spirits at the restaurant. The license cost $75,000. While the license is transferable
Imagine that there are 1,000 consumers who have preferences consistent with the same quasi-linear utility function (ui[x1; x2] = 10 ln[x1] + 10x2, which impliesMRS = ). (a) Sketch the individual consumer's demand curve for good1.
Suppose a firm operates as a price taker in a perfectly competitive industry. The firm's TC function is given by TC = 10 +4Q +2Q2, so its Marginal Cost is MC = 4 +4Q. If the market price is P = $100, what is the maximum amount of profit
The Oil Price Information Center reports the mean price per gallon of regular gasoline is $3.79 with a population standard deviation of $0.18. Assume a random sample of 40 gasoline stations is selected.
Suppose that a firm sells in a competitive market at a fixed price of $42.50 per unit. The firm's cost function is: C = 150 + 5Q. Determine the minimum quantity at which the can break even. Are there multiple break even points
You are division manager at Toyota. If your marketing department estimates that the semiannual demand for the Highlander is Q = 100,000 - 1.25P, what price should you charge in order to maximizes revenues from sales of the Highlander
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