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A competitive firm uses two variable factors to produce its output, with the production function y = min{x1/2, x2}. The price of factor 1 is $4 and the price of factor 2 is $5. Due to a lack of warehouse space, the company cannot use more than 20 units of x1. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn’t have to pay this cost if it produces no output. What is the lowest price that would make a firm willing to produce a positive amount?
Discuss the propriety of entities that acquire and assert patents but make no product. You discover a specific human gene that determines male pattern baldness. Explain what it means to say that you can patent this gene.
Distinguish between ongoing demand pull and ongoing cost push inflation. Carefully draw them. Why might it be difficult to establish the extent to which a given rate of inflation is either demand pull or cost push?
The bank is paying 10.13% compounded annually. The inflation is expected to be 11.77% per year. What is the market interest rate?
A decrease in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
According to the Huffington Post on September 19, 2012,“Demand for the new Apple Inc iphone 5 has been incredible,' AT&T Inc Chief Executive Randall Stephenson said on Wednesday." The increase in demand causes equilibrium price to _ and equilibrium q..
The production function for Hogwarts Remover, an anti-magic potion, has the form Q = K 0.5L 0.5 , where Q is in bottles per period and K and L are in machine-days and labour-days per period, respectively. a. Graph the unit isoquant (Q = 1) and the is..
Calculate the elasticity of demand for good X with respect to the price of X, the price of Y, income, and advertising. Calculate consumer surplus at the profit-maximizing price if the marginal cost is $264.
Assume that in 2007 the U.S. Government issued a debt security with a purpose of consolidating all of the federal national debt. At the time of the issue, each security was priced at $15,000 and promised to pay 10% coupon rate indefinitely, just as i..
Talk about six economies of worth, or sets of values, that we prioritize differently. Although we may not always prioritize our values the same way in different situations, I'd like to think about how you would rank these six economies of worth for y..
q. 1. patent systems can be worthwhile if induced innovations are important also if the rewards from patents speed them
A machine makes drill bits. When the machine is operating correctly, the variance of the diameter of drill bits is no more than .04 inches. In a random sample of 81 drill bits, the sample variance was .07. Test the hypothesis at the 1% level that the..
What is the probability that a sample of 100 units contains a. Five or more defective units? b. Ten or fewer defective units? c. Eleven or less defective units?
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