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In the short run, a particular type of skilled labor is the only variable factor used by a firm. The manager of the firm has estimated that the marginal product of labor is given by MPL = a - b L, where a and b are numbers to be specified below. The hourly wage is w, and each unit of output can be sold in a competitive market at a market price P. If w = $78, P = $25, a = 50, b = 2, and the firm is employing L = 22, then based on this information
Suppose that in 1950, robots were so crude that they were useless in the assembly of toasters, so that toasters had to be assembled entirely by hand. Draw an isoquant map illustrating this situation. Now suppose that as a result of progress in rob..
Many companies are using computer mediated communication for training and updating their employees. They must choose the most effective and efficient manner of communication. Effective and efficient may be defined as achieving the communication go..
Do you think a company as an ethical obligation to notify an employee if he is going to use Spoke, or (because it will search only computer files on company owned computers) is it none of the employees business?
The classical range of the aggregate supply curve. Advise the President on good economic policy - When more purchasing power is spent, one expects rising output at rising prices.
Suppose OPEC breaks apart and oil prices fall substantially. Initially, which curve shifts in the aggregate supply/aggregate demand model? In what direction does it shift? What happens to the price level and real ouput (GDP).
discuss how opportunity costs relate to japans cleanup efforts after the devastating earthquaketsunami of march 2011.
Assuming no change in hours of work, if real output per hour of work increases by 10 percent, what will be the new levels of real GDP in the right column of A Does the new data reflect an increase in aggregate supply or does it indicate a decrease..
Unemployment is more so important when it comes to the operations of the federal government as its performance is often linked to how efficient it is able to produce jobs thereby reducing unemployment. What are the types of unemployment? Please ex..
In the signaling model, assume high school graduates are paid a stream of income whose present value is $200,000. College graduates are paid a stream of income whose present value is X. College education costs higher-productivity wo..
This is a post from Ben Bernanke's blog. The purpose of the post is to explain why interest rates are so low and the role that the Federal Reserve (the Fed) plays in determining the rates.
The table listed below demonstrate the quantities of product X that a producer can produce in one growing season on a 1 acre farm using different amounts of labor.
Suppose that you bought an asset that pays 6% nominal interest rate, you expect that inflation rate to be 1%, and the actual inflation is 4%. Calculate the expected real interest rate and the actual real interest rate.
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