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A firm is currently using two inputs: labor and capital. It rents equipment for $1,000, which produces a value of the marginal product of $5,000. It hires workers at $10 an hour who produce a value of the marginal product of $100. The wages of workers rise by 20% and the rental price of capital increases by 25%. The firm should hire __________ labor and __________ capital.
a. less; more b. the same amount; the same amount c. more; less d. more; more e. less; less
The vice-president for finance decided to invest $2,000,000 in a 2-month investment that pays 11.5% simple interest. how much interest will the college earn on the investment.
The legislation provides increased funding for computer education in primary and secondary schools, as well as tax breaks for firms that develop computer software. As result of this legislation, what do you predict will happen to the equilibrium p..
If a cartel like OPEC restricts the output of member nations to less than they are capable of producing with their existing levels of capital equipment, does the social cost of a monopoly increase? Explain.
Some people advocate government funding of college scholarships as a way of creating a more egalitarian society. Others argue that scolarships help only those who are able to go to college. Do your answers to the preceding questions shed light on ..
Explain how can a domestic market be protected. If a country had protected domestic market, what would be the likely effect on its balance of trade.
Discuss perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings. Additionally, how does the proliferation of global trade and competition contribute to markets moving
The government did nothing to stem the decline. From the point of view of economic policy, elucidate what would you think was the reason.
A one-year, $100,000 loan carries a coupon rate and a market interest rate of 12 percent. The loan requires payment of accrued interest and one-half of the principal at the end of six months. The remaining principal and the accrued interest are due a..
Suppose that firm sells its product in a perfectly competitive market. The company fixed costs are equal to $100 and its variable cost schedule is as follows;
You have purchased 12.5 pounds of Beef Tenderloin. After cleaning the tenderloin, you determine that there is 3.5 pounds of waste. What is the yield percentage?
Allan Sports sells snowmobiles in a Northern Suburb of the Twin Cities. For the third year in a row sales have been dismal.
For this assignment you will write a 500- to 700-word memo evaluating two conflicting consultant reports. Your report should.
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