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A machine has a current salvage value of $10,000, which will drop by $2,000 per year. The maintenance costs will be $1,250 per year. What is the marginal cost to extend the service for 1 year, at 8%?
Suppose the U.S. and Mexico both produce 2 goods, tablets and cereal, using 2 inputs, capital (K) and labor (L). The production of tablets is capital-intensive, and that of cereal is labor-intensive.
question 1 at the national level public debate has centred on the performance of the main monetary measure - gdp. each
Assume that your household gets a machine that cost Lesley provides you with food. Illustrate what would that do to your labor supply.
Assume your town decides to levy a tax to raise funds for construction, maintenance also other expenses for local schools. Should the tax be proportional, progressive or regressive.
when final sales are larger than gdpa. inventories did not changeb. a net increase in inventories took placec. a net
Producers will be made to pay a tax for each beer sold. Use a graph to elucidate why the tax burden will not actually fall on the people that this person wants to punish.
In developing a vaccine for the SARS virus a pharmaceutical company incurs a very high fixed cost. The marginal cost of delivering the vaccine to patients, however, is negligible (consider it to be equal to zero).
Suppose that a firm's production function is given by U=K.33 * L.67, where marginal product of capital is QK = .67(K-0.67 * L.67) and MPL is QL = .67(K.33 * L-.33).
If the demand curve is QD = 100 - 10P and there is a $1 price increase, then the elasticity of demand at P = 2 is 2. If the absolute value of a demand elasticity is less than 1, then
what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources?
Explain why monopolistically competitive firms frequently prefer non-price competition to price competition.
The inflation rate from 2010 to 2011 for a good j is defined to be Ij = (Pj/pj) ? 1, where pj was the price in 2010 and Pj was the price in 2011 (assuming for simplicity that the prices stayed fixed throughout each given year.
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