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Suppose that, for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”, on the axes) for the production of three different quantities of ditches. Do they have a “funny” shape?
a) Now consider one such ditch-digging firm that has five backhoes but employs six backhoe operators. Can you explain why this might make sense? (Hint: think about whether/how the marginal product of the sixth backhoe operator could be positive)
b) Now suppose you see another ditch-digging firm that has seven backhoes but employs six backhoe operators. How could this make sense?
In 2013, the furniture store PB produced 10 mahogany desks. One of them is sold to Jeanine for $3,259, later that same year Jeanine sold the desk to Pamela for $1,802. The remaining desks were not sold to anyone that year and stay in PB's inventory a..
What recommendations, i.e. future strategic direction, would you make for the economy (country) to sustain economic growth? Word limit 1000 words. Learning Outcome: 4 & 5
Bulls Eye department store specializes in the sales of discounted clothing, shoes, household items, etc. similar to the offerings at a regular Walmart or Target. Bulls Eye is the only department store in Show Low and the nearest other discount retail..
Which of the following does NOT increase during an economic expansion?
In standard macro model, it is usually time preference that causes positive interest rate. But is there anything to do with risk aversion of utility function that causes existence of positive interest rate?
Explain how you would go about determining what are the potential harms and potential benefits of disclosing this information voluntarily Is there any information you feel cannot be included in the evaluation? What is it? Why can’t you include it?
Assume a one-time decrease in population, possibly caused by an onset of disease or a sudden out-migration.
Illustrate what would you expect to happen to the company's total revenue if the shoe prices were increased. What if the company lowers the price.
Describe the foreign currency and home currency approaches to capital budgeting for a foreign project. Clearly bring out the differences between the two approaches. Which is better and why? The textbook describes the field of Behavioral Finance as th..
Contrast two or three key economic factors for this country with the United State economy also comment.
Discuss the strategies that a particular company employed to either obtain or sustain a competitive advantage. For example, Microsoft arguably created a competitive advantage by offering a unique suite of products that now reside on many desktops. Th..
Suppose the federal government has no national debt and spends $100 billion, while raising only $50 billion in taxes. What amount of government bonds will the U.S. Treasury issue to finance the deficit? Suppose the media report that the federal defic..
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