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Desmond launders his white clothes using the production function, q=2B+3G , where B is the number of cups of Kao bleach and G is the number of cups of Sun bleach. Draw an isoquant that represents this production function (put B on the horizontal axis and G on the vertical axis). What is the marginal product of B? What is the marginal rate of technical substitution at each point on the isoquant?
The inverse demand in a Cournot duopoly is P = a − b(Q1 + Q2), and costs are C1(Q1) = c1Q1 and C2(Q2) = c2Q2. The government has imposed a per-unit tax of $t on each unit sold by each firm. The equilibrium output of each firm is the same as a situati..
If the marginal product of capital is twice the marginal product of labor and the price of a unit of labor is $4, illustrate what must be the price of a unit of capital.
Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers. Graph the production possibilities frontier for the foreign country. What is the no-trade relative price of cars in Foreign?
Using what you have learned about market-based incentives, suggest a policy initiative that would discourage land disposal in the United States.
The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launching services to commercial firms.
Charlie has $12,000 to invest for a period of 5 years. The following three alternatives are available to him: Account 1 pays 3.00% for year 1, 6.00% for year 2, 9.00% for year 3, 12.00% for year 4, and 15.00% for year 5, all with annual compounding. ..
Suppose there are two firms in a market who each choose a quantity of output to produce. Firm 1’s quantity is q1, and firm 2’s quantity is q2. Firm 1 chooses their quantity, q1, first. Firm 2 observes q1, and then chooses their quantity, q2. How muc..
On an IT system development project, what team members are required to participate in requirements definition?
Discuss the benefits and drawbacks of mergers and acquisitions to the business environment. Examine and evaluate the laws governing Mergers and Acquisitions in the UK.
Suppose that several months of data showed the CPI increasing at a 4 % annual rate due largely to increases in the price of energy and food related commodities following several years when the CPI only increased by 2.2 % per year. What would you expe..
A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.
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