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Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is constant at $50 per unit. The production function is f(E,K) = E½K ½, so that the marginal product of labor is MPE = (½)(K/E) ½ . If the current capital stock is fixed at 1,600 units, how much labor should the firm employ in the short run? How much profit will the firm earn?
When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..
Explain with an example how the law may permit something that is ethically wrong. Samuel and his friends form an LLC. Samuel, through an agreement, promises to contribute personal property to the LLC within a year of the LLC's operation. Samuel passe..
There is currently 20 identical firms in a perfectly competitive market. Each firm has a cost function of the form: SC(q) = 10q2 +200q + 7000. The market demand is P = -4QD + 3000. Find the short run equilibrium price, market quantity, and firm quant..
Explain and discuss view that at beginning of 21st century in US, key macro-finance ratios were such that a decade of negligible real returns to stocks was in prospect. Are key financial ratios useful for forecasting returns to major asset classes..
The HRB Corporation is the world’s only manufacturer of air filters for Zamboni engines. Last year, HRB charged $20 per filter and sold 1 million of them, and it paid all of its production workers $10 per hour. What was the workers’ marginal product ..
Speculate about why people in higher income groups vote for reasons that are borne out of a sense of duty rather than from economic interests.
Hart's Floral Shop sells bouquets for special occasions. Annual demand is 500? bouquets, the? company's cost to place an order with its vendor is? $25, and the cost to hold a bouquet in inventory for a year is? $15. If Hart orders from its vendor in ..
Explain the benefit-based principle in taxation. Also explain how this principle is linked to the Lindhal equilibrium in local public finance choice
The market for beer is perfectly competitive. The price of a barrel of beer is $40. Fine Beers is a company that produces the beer and has total cost function of TC = 480 + Q2 (Q squared). It also has a marginal cost given by MC = 2Q, where Q is barr..
Elucidate using the example of multiple equilibria in the labour market. Illustrate diagrammatically
The rate that does aggregate output, aggregate investment, aggregate consumption as well as per- capita income grow in this steady state.
We have a bond issue currently outstanding that has 25 years left to maturity.the coupon rate is 9% and coupon are paid semi annually.the bond is currently selling for $908.72 per $1000 bond what is the cost of debt
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