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The cost function c(w1, w2, y) of a firm gives the cost of producing units of output when the wage of factor 1 is w1 and the wage of factor 2 is w2. Find the cost functions for the following firms: A firm with production function f(x1,x2) = min{ 2xl,3x2} A firm with production function f(xl,x2) = 2x1 +3x2 A firm with production function f(x1,x2) = In
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Illustrate what is economy's aggregate consumption function. Illustrate what is marginal propensity to consume for economy.
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Use the aggregate expenditure model to explain the following statements from the opening news article.
Why would consumers demand 0 minutes in the long run if the price was $.30 every minute.
find the new equilibrium GDP when I increases to 350 and all other values remain the same.
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Write an equation for a typical production function also illustrate what every of the terms represents.
Do not try to explain people's tastes, but they do try to explain what happens when tastes change.
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