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1. When is a production function said to have constant returns to scale, increasing returns to scale, or decreasing returns to scale?
2. How does technological change affect a firm's output?
3. What is an expansion path and how does it relate to a firm's total cost curve?
assume that all other banks hold only the required amount of reserves. if First national decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase
Two equal-sized newspapers have overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay $10 to advertise in one newspaper but only $19 to advertise in both, because they're unwilling to pay ..
Jeff owns a garage and has 3 mechanics to help him. With the tools used being fixed in the short run, his production function is given by 5 + 2L = Y , where L is the number of mechanics and Y is the number of cars they can fix. If Jeff hires a fou..
Mr. Smith wishes to sell a bond that has a face value of $1,000.The bond bears an interest rate of 8%,with bond interest payable semiannually. Four years ago, the bond was purchased at $900.
A firm has a production technology that permits it to turn 1 unit of good 1 into 2 units of good 2. If the price of good 1 is 1, at what price for good 2 will the firm just break even? Graph the firm's profit as a function of the price of good 2.
A stock was priced at $150 per share at the end of 2007. The following table shows dividends per share paid during each year and the price of the stock at the end of the year for the following four years: 2008, 2009, 2010, 2011 and the Dividends P..
Discuss why it is often asserted that exporters suffer when their home currencies appreciate in real terms against foreign currencies and prosper when their home currencies depreciate in real terms.
A recent study of 50 self-service gasoline stations in the Greater Cincinnati-Northern Kentucky metropolitan area revealed that the mean price of unleaded gas was $2.029 per gallon. The sample standard deviation was $0.03 per gallon.
Calculate the initial investment outlay and operating cash flow
1. Find the Cartel solution (total output and price) and compute the firms profits assuming equal split (each rm producing half of total output). 2. Find and draw on a graph the firms reaction functions.
When consumers do not have enough time or opportunity to aoid price increases, governments can levy sales taxes that distort resource allocations among producers to a smaller degree.
Suppose that five bidders with values of $500, $400, $300, $200, and $100 attend an oral auction. Which of these is closest to the winning price?
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