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Consider a firm for which production depends on two normal inputs, labor and capital, that are not perfect complements. Initially the firm faces market prices of w = 10 and r = 8, for labor and capital. These prices then shift to
w = 7 and r = 7.
a) In which direction will the substitution effect change the firm's employment and capital stock?
b) In which direction will the scale effect change the firm's employment and capital stock?
c) Can we say conclusively whether the firm will use more or less labor? More or less capital?
If you have been offered $137,000 for a job in Los Angeles and $117,000 for a similar job in Dallas, elucidate which job affords you the highest purchasing power of the bundle of goods in the price index.
Briefly describe a product or service you use every day and suggest a better approach to advertising that product/service than is currently being used. Explain your rationale.
Among their many functions, financial institutions. In an interest rate swap, the size of payments swapped is determined by. Under the efficient markets hypthesis: Suppose I am given a choice between $8800 today or $10,000 in 3 years. If I choose to..
Explain how many cars does the United States export. Suppose a car costs $10,000 on the world market. How much, then, does a barrel of oil cost on the world market.
q1. what are the overall keys to answer questions about how attaching more regulation would influence economic
"Maximizing Revenue" Operating in a monopolistically competitive market structure and faces the following weekly demand and short-run cost functions:
Find the net demand curve-facing industry A. Conclude A's optimal price also o/p. How much o/p do the other Industries provide in total.
Assume that a firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500.
As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe.
china raises reserve requirementsthe peoples bank of china the countrys central bank raised the reserve requirements of
Elucidate how do you expect the demand and supply of the good or service to change in the next year. Support your answer.
Discuss Soutwest Delta airlines merger and describe the competitive environment within the industry. Is there a dominant firm.
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