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Suppose the marginal expense of hiring another worker is $150, and the marginal expense of hiring current workers for an extra hour is $10. The added output associated with an added worker, holding both capital and average hours per worker constant, is 120. The added output generated by increasing average hours per worker, holding capital and the number of employees constant, is 7. If the firm is interested in maximizing profits, what should it do?
Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home country’s government on (i) the home country’s consumers of Y, (ii) the home country’s producers of Y, and (iii) the home gover..
If columns (1) and (3) of the demand data shown above are this firm's demand schedule, Illustrate what and how much will be the profit-maximizing level of output for the firm.
The average total cost of a monopolistic firm is AT C = 80/Q + 20Q. The firm is facing the demand function given by P = 6000 − 20Q. a) What will be the total profit that this firm will generate if it chooses price and quantity optimally?(Profit=22492..
Illustrate what whould be the appropriate elasticity to compute. Using the midpoint method, compute this elasticity.
Think of an emerging energy industry that has differential access to productive inputs. Is it likely that any of the three leading American companies in that industry can develop a sustained competitive advantage? Explain?
As the United States becomes wealthier, and as medical care interventions become more effective in improving health, spending more on our national wealth on medical care is good, not bad.'
Suppose that your opponent is not playing her Nash equilibrium strategy. Should you play your Nash equilibrium strategy? why or Why not?
Last year Mason Inc. had a total assets turnover of 1.5 and an equity multiplier of 1.75. Its sales were $195,000 and its net income was $10,000. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased..
A high pressure pump at a methan gas (bio fuel) plant in memphis costs $30000 for installation and has an estimated life of 12 years. By the addition of a specialized piece of auxiliary equipment, an annual savings of $500 in operating expense for th..
When moving up along the production function, the marginal product of capital will:
How did the enclosures law fuel the Industrial Revolution in Great Britain? Would you agree with Karl Marx in saying that the Industrial Revolution and its capitalistic foundations negatively affected the working classes?
Examine how the Federal Reserve controls the money supply. In a paper, formulate how the independence of the Federal Reserve should or should not be modified in any way.
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