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Suppose a representative agent has a utility function involving consumption and labour supply of the form U=ln(C)-2L^2
(i) The agent is a ‘yeoman farmer', that produces their own output with a production function C=Y=AL^α, where Y is output per head. Derive the optimal level of labour supply, and comment on illustrate what it implies for the relationship between labour supply and productivity growth
Heer Enterprises requires someone to supply it with 198,000 cartons of machine screws per year to support its manufacturing needs over the next 6 years.
Analyze the modern notion of microfoundations with Marx's 'real foundation' for the analysis of economic activity.
make sure to comprise explicit benefits that can be realized by consumers as a consequence of the enforcement of this legislation.
Assume that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed following levels of production corresponding to different numbers of workers:
What is the difference between the real interest rate and the nominal interest rate? How would not knowing the difference effect perceptions of the economy and affect people's decisions?
Suppose which major function of profit is to allocate resources according to consumer preferences
Either tenants occupy rent controlled buildings with a customers surplus deserve to live there.
Explain how much should the store charge for an yearly membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy.
Utilize the principle of contracting-out to provide an economic argument for contracting-out or outsourcing some government-provided service or aspect of a firm's production.
Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the IS-LM model to illustrate graphically.
Illustrate what questions would you suggest to the CFO to ask to marketing department and what is your recommendation to the CFO.
Describe the economic situations when your position can be successfully implemented and when it may be doomed to failure.
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