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Assume that a firm uses labor and capital to produce a product. The firm hires labor at a wage rate of $4 per unit and rents capital at $5 per unit. At its current output level, the marginal physical products of labor and capital are 20 and 30 units, respectively. To minimize its cost of production without changing the level of output, the firm should a.) make no changes b.) hire more labor and rent more capital c.) hire less labor and rent more capital d.) hire more labor and rent less capital Hire less labor and rent less capital
the u.s. wants to make progress on this free trade agreement and argues that freer trade is necessary because the
draw on the reservation prices provided in question 6 and assume mixed bundling.suppose the bundle price is set at 3
1.What are the different modes of entry into China? Briefly discuss each entry mode and the associated risks.
List three strategies that can be used by firms to enhance profits in an environment of extreme price competition.
Assume you are the owner of a small cafe that employs 15 people, 10 of whom are front-line, unskilled workers, and currently paid the minimum wage. The state government is considering increasing the minimum wage. As a business owner, would you su..
About thirty United States localities circulate their own currency with names like "Ithaca Hours" and Dillo Hours." Doing so is perfectly legal although through law they are subject to a 10% federal tax, which currently the government is not collecti..
Describe the short-run and long-run effects of an increase in the money supply on the equilibrium level of production and the price level.
since the AC curve in the problem is upward-sloping everywhere, it is not possible to construct a zero-profit equilibrium given the assumptions of the problem this outcome requires a U-shaped AC curve.
A benevolent social planner would prefer that the output of good x be decreased from its current level if, at the current level of output of good x,
The government can increase GDP in the short run by running a budget deficit. What are some long-term effects of deficit spending?
a state two economic principles of taxation. b which principle best justifies the excise tax on gasoline when the tax
Three office furniture firms that offer different payment plans have responded to a request for bids from a state agency. which vendor's plan is preferred?
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