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A firms production function is given by Q = 10 x (EM + EF)1/2, where EM and EF are the quantities or male and female employees. Males and females are perfect substitutes. Please note that the marginal product of labor is given by the equation MPE = 5/(EM + EF)1/2. The firm sells its output for $50. The market wage for males is $25 and the market wage for females is $15. How many male workers would the firm hire if the employer did not discriminate? How many female workers would be hired? What are the firmâ€TMs profits?
Use the economic perpective to explin why someone who isnormally a ligh eater at a standard restaurant may become somewhat of a gullton at a buffet-style restaurant that chares a single price for all you can eat.
If farmers were to decry the effect of this new technology on the price of milk and lobby government to set the price of milk at the price before the invention, elucidate the result.
One Tuesday the government announces two new policies. First, you must pay a head tax (lump sum tax) of $3 a day. Second, the government will subsidize the purchase of apples (but not of oranges) so that the price of an apple falls to 50 cents. Draw ..
One example is deciding which side of the road to drive on. It doesn't matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.
Determine if you should go into your own solo private practice or to join a specialty group of physicians.
Elucidate how do you compute the effective price reduction resulting from a coupon promotion.
Distinguish between the Federal funds rate also the prime interest rate. Why is one higher than the other.
Explain why the firm will or will not experience diminishing marginal returns to labor in the short run if its production function is.
Global studios are thinking of producing a mega film, Aqua world, which could be a mega hit or a mega flop.
Demonstrate the short-run effect of this tax cut using the IS-LM model also the AD-SRAS-LRAS model. Illustrate what will take place to o/p also the interest rate.
By using calculus show that the production function exhibits diminishing returns to labor.
Suppose the government implements a policy that subsidizes business investment. Explain how will this affect the relationship between investment and the interest rate.
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