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This exercise develops an alternative proof of Theorem 16.3.
(a) Choose the appropriate topology on Z so that U is continuous on X × X × Z.
(b) Use Theorem A.12 in Appendix A to show that the objective function in Problem 16.1 is continuous in the product topology; Theorem A.13 and Lemma A.2 to show that the constraint set is compact; and Theorems A.9 and A.16 to show that V∗(x(0), z(0)) is well defined, continuous, and bounded over X × Z.
(c) Deduce the same results for V (x(0), z(0)) by applying Theorem 16.1.
Now the company plans to invest of 9% per year. Now the company plans to invest the total amount accrued in another certificate that pays 9% per year compound interest. How much will the new certificate be worth 2 years form now.
the marginal product of labor measured in units of output for a certain firm is given by mpn 309 - 2n. n is the
There are two workers in the economy, "A" and "B"; "A" can go to school and "B" cannot. Education increases future income according to the following function: I(e)= 50(e)/(1+e) Total cost per year of schooling equals 2, and thus: mc(e)=2.
a. What is the real value of output (Q) Now assume that the Fed increases the money supply by 10 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase c. If, instead, real output is fixe..
Robinson Plastics makes clear plastic products with injection molding techniques. Their latest invention is a plastic cup with a sharp blade mounted inside to cut prescription pills into small pieces.
A firms in a purely competitive industry is currently producing 1000 units per day at a total cost of $450. If the firm produced 800 units per day, it cost would be $300, and if it produced 500 per day, its total cost would be $275.
Explain the key reasons why you classified the company as a monopoly, and state how the company operates relative to at least two (2) characteristics of that particular mar
Derive GGC's marginal revenue (MR) and marginal cost (MC) curves in each market. Show graphically GGC's demand, MR, and MC curves for each market.
Your company just purchased office furniture (Asset class 00.11) for $100,000 and placed it in service an August 13, 2007. The cost basis for the furniture is $100,000, and it will be depreciated with the GDS using half-year convention.
A firm must decide whether to provide their salespeople with firm-owned cars or to pay a mileage allowance for their own cars. New cars would cost about $28,000 each and could be resold 4 years later for about $11,000 each.
Rob currently earns a salary of $1,000 per week as an economics instructor. His next best career would have been an assistant manager at Pizza Hut, where he would have earned $12 per hour, and would have worked for 40 hours per week.
Suppose that market demand is given by P = 260 - 2Q and that firms again have a constant marginal cost of 20, while incurring no fixed cost, but now assume that the firms are Bertrand competitors and have unlimited capacity.a. What is the one-peri..
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