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Suppose the production function is given by y = 4x1 + x2. If the factor prices are $4 for factor 1 and $2 for factor 2, how much will it cost her to produce 70 units of output?
Calculate the total social marginal benefit function and what is the socially efficient number of computer movie files?
An accountant for a car rental company was recently asked to report the firm's cost of producing various levels of output. What is the average fixed cost of producing 2 units of output? What is the average variable cost of producing 2 units of output..
Why do people hold their wealth in the form of money rather than another asset that will provide a rate of return higher that the rate on return
Draw the budget constraint for a world with both fixed time costs and fixed money costs of working. What is the effect of fixed costs on the reservation wage?
What's the difference between the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution?
Apply the substitution and income effects to the purchase of meat given the lower price. How is this related to the law of demand? Hint: use chicken as a substitute good in your discussion.
You're the manager of the firm that sells a commodity in market that resembles perfect competition, and your cost function is C(Q)=Q+2Q^2. Compute the expected market price.
explain how rent seeking can lead to a drop in production of goods and services. what role might the underground economy play in lessing the drop in productie activities.
How does knowledge of value elasticity between different groups of consumers or for several products enable managers to price discriminate, change different prices for these groups?
Write the expression for this firm's Total Revenue and write the expression for this firm's marginal revenue - what is the profit maximizing (or loss minimizing) level of output
Determine the optimal size of the shopping center (to the nearest 100 square meters) based on existing estimates of the demand for retail space.
Calculate Alex's income elasticity of demand for bagels and what is the pasta sauce makers' estimate of the cross elasticity of demand for pasta sauce with respect to the price of pasta?
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