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1. Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.
2. Is it possible to have diminishing returns to a single factor of production and constant returns to scale at the same time? Discuss.
The lodging industry
A hotel owner, having heard that new hotels consider to open in area, says, We have too many hotels in this town already. Statistics show that vacancy rates average 20% on any given night.
If the Federal Reserve buys a $10,000 government bond from an individualin the economy, what is the initial effect on the money supply? What is the ultimate effect on the money supply?
1. A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal revenue is $30, its average revenue is $40, and its average total cost is $34. At Q = 500, what is the firm's total cost? 2. A m..
you are assigned the task of computing the variable capital and labor costs for cost cutters production level. below
The problem is belongs to Economics and it is discuss about the insights and shortcomings from Ricardian model. Ricardian model is best known for its representation of optimal usage of a country's resources.
Determine what role health plays in developing economies
part a your first task is to use models and concepts relating to producer behaviour to analyse the effects of
What different mechanisms are available to the federal government to change aggregate demand Why is a market economy susceptible to coordination failures that can lead to unemployment and inflation
The above problem in Economics is about an article written by Paul Krugman. The article in question here is "The Myth of Asia's Miracle". The article speaks about the reasons behind the sudden growth in Asian countries and their economies.
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units.
A $19,200 mortgage bond that is due in one year pays interest of $600 every three months.1. Find the coupon rate of the bond. ____ I found b=0.125 2. Find the present value of one of these bonds. (Ignore past activity; consider future interest pa..
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