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Assume a firm both sells its products and purchases its resources in purely competitive markets. Under the above assumption, state the criterion (necessary and sufficient condition) for a firm to employ its resources in such a manner as to minimize its total costs of producing any specified amount of output.
Suppose years of schooling, s, is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by: What is the average male-female wage differential in the labor market? How much of this wage dif..
Donald is a stamp collector. The only things other than stamps that Donald consumes are Harold's doughnuts. It turns out that Donald's preferences are quasilinear, represented by the utility function U(d, s) = lnd + s, where d is the number of doughn..
To apply supply side economics, given that only 40% of the tax credits given to businesses are reinvested, how much tax credit do investors need to move the economy to the full employment level? You should assume that consumption and government spend..
John lives for three periods. He is currently considering two alternative education-work options. Alternative 1: he can start working immediately, earning $100,000 in period 1, $110,000 in period 2, and $120,000 in period 3
Suppose that Lorena consumes only three different goods: steak knives, butter knives, and butcher knives. If, according to Lorena’s preferences, butter and butcher knives are inferior god, must steak knives be a normal good?
Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. Explain in each case how the change you advocate would affect commercial bank reserves, the m..
Aramco Inc operates in a competitive market with the cost function as follows: TC = 100 + q3 – 12q2 + 60q. If the price per unit is $ 20, find equilibrium level of output. Determine the shutdown quantity of this firm.
As a result of the Kansas-Nebraska Act:
Between the years of 1973 and 2003, Canadian real GDP trended downwards. Deflationary (contractionary) monetary policy contributed, at least in part, to the recession of the early 1990s. There is not much of a relationship between the growth rate of ..
Explain the potential role that the DOJ's leniency program might have on prosecutions and incentives for price fixing.
q.apex corporation has an equity cost of capital of 14.4 and a debt of 6 and the firm maintains a debt equity ratio of
Suppose a bar has two types of clients: men and women. Suppose the monopolist can only charge one price. What price would he charge? Suppose the monopolist engaged in third degree price discrimination. What prices would he charge?
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