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A public relations firm is retained to 'cover the media' for a client. There is something peculiar about to being paid to chat with other people.
a) When the p.r. Firm doubles its capital it quadruples its workforce. It's production function is given by F (K,L)= min [K^2,L]. If it pays workers a wage of 1 and the rental price of capital is 9, find the cost of pricing 100 units, assuming no fixed costs.
b) Now let's model the drop in the cost of media associated with the Internet as a drop in the cost of capital to 1. What is the new cost of producing 100 units?
Government sometimes restricts international borrowing and lending by taxing them. In a two-period, two-country endowment model, if the Home's position is r^A
expectations of the business community are increasing into areas beyond the core product or service into consideration
assume an urban clusters income i is given by the function i4n-0.05n2 where n denotes the clusters population in
The total utility for water is higher than the total utility for diamonds. You can explain the diamond-water paradox (that diamonds are expensive but not necessary for survival / not as useful, while water is inexpensive yet necessary for survival / ..
What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP? Based on the table, what calculations must you make to determine GNP from GDP? What is national..
Budget Constraint- Provide an interpretation for the budget constraint. Explain what the slope of the budget constraint is. What is a point of tangency?
Firms that had virtual monopoles, that is control over at least 80% of industry production, because of control over an essential resource include all of the following except the - The marginal revenue that would be derived from the production of a ..
A tax that results in a larger fraction of income being paid in taxes as income rises is a ________ tax.Answer regressive head progressive proportional
Suppose a firm’s production function is: f(E,K) = 40K0.25E0.75 The corresponding marginal product functions are: MPK = 10K-0.75E0.75 and MPE = 30K0.25E-0.25 Suppose initially that the hourly wage is $9 and the price of each unit of capital is $15. If..
Discuss the pros and cons of free trade, considering the perspectives of both advocates and critics.
In a competitive market free of government regulation,
A consumer has a budget of $200 to spend on bowling (b) and tutoring sessions (t). Assume that each game of bowling costs $16 and each tutoring session costs $20. Draw the consumer’s budget line on the graph below. Put bowling on the “x” axis. What i..
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