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Suppose we are given the firm’s marginal rate of technical substitution of labor for capital at the combination of labor and capital firm currently uses. Can we determine the Firm’s marginal product of labor and the margianl product at that combination? why or why not
If ___________________ exceeds ___________________, then the economy is in an inflationary gap. Eventually input prices will fall and output will rise in the economy if:
Unemployment is a more serious economic problem than inflation and it should be the focus of the Fed’s monetary policy.” Evaluate this statement and explain why the Fed’s primary policy goal is price stability.
The author defines market equilibrium as generating the largest possible total surpluses and being efficient when four conditions are met. What is meant by "total surpluses", and what are the four conditions that must be met? Can you name a market in..
As part of your answer converse whether or not one or more of the legs of the organizational stool was unbalanced.
What is the value of a preferred stock that pays a perpetual dividend of $100 at the end of each year when the interest rate is 6 percent?
Suppose you manage a perfectly competitive firm. Your short-run total cost is given by the following: TC=200+2q^2, where q is the quantity produced by your firm. Given this total unit cost, the firm’s short-run marginal cost is given by: MC=4q A. Wha..
What are all producers assumed to maximize?
Draw the 3 graphs required to show the impact on overall GDP of a decrease in the money supply. Also carefully explain, in your own words, the relationships between the graphs, the process of adjustment, and the overall impact of the money supply dec..
Though your answer needs to be correct in terms of economic theory (so be sure to read the assigned chapters), creativity and having fun with it is strongly encouraged.
How much would you pay for a perpetual bond that pays an annual coupon of $80 per year and yields on competing instruments are 20%? You would pay ___? If competing yields are expected to change to 12?%, what is your expected capital gain? (or loss)?
Discuss the following excerpt from a recent story in the Wall Street Journal. In your discussion demonstrate that you can use the concepts of: "price discrimination and "barriers to entry" to explain:
Which of the following cannot explain the change in female labor force participation rates over the past 75 years? Unemployment compensation programs provide a lower income than workers received while they were employed because full replacement of lo..
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