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A young college student on a tight budget is campaigning for an open city council seat. A friend in her economics class estimates that voters are influenced by TV and newspaper ads according to the following function: Votes = 300TV0.6 NP0.2, where TV represents the number of television ads and NP represents the number of newspaper ads. Thus, the marginal product of a newspaper ad is 60TV0.6 NP–0.8 and the marginal product of a TV ad is 180TV–0.4 NP0.2. A local television ad costs $400, and a local newspaper ad costs $250. If the candidate needs 1,800 votes to win, what is the lowest-cost combination of newspaper and TV ads that will bring her victory?
A prospective change in government purchases. Suppose that people learn in the current year that government purchase will increase in some future year. Current government purchases do not change. What happens in the current year to real GDP,Y; Consum..
How do you evaluate Jobeks situation from the resource based view and institution based view? Why have resources and institutions hindered Barney to cope with the foreign exchange situation, but simultaneously helped him to turn this company around? ..
Joe is an empire builder". That is, his goal is to produce and sell as much as possible. Show that Joe's output is a decreasing function of all input prices.
Name the factors not counted in GDP that, in your view, most affect human welfare or happiness. How do you imagine that modifying to account for these factors would raise or lower current U.S. GDP relative to earlier times or other countries? (Be spe..
Equilibrium in our graph of AD and SRAS occurs where AD = SRAS. Unless otherwise specified, we assume that the economy rapidly moves to equilibrium. What ensures that the economy is in equilibrium?
Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. There are no good substitutes and economies of scale are larg..
In response to continuing financial difficulties of their employers, unions representing workers at U.S. automakers have accepted a two-tiered wage schedule, by which new hires are paid less than the standard union wage. How does this change affect t..
On what documents (and where) would a sale of some of your company's equipment for cash appear?
Assume you are part of a research team evaluating a proposal to clean up a dangerous squander site.
How does an open market purchase by the Fed affect the level of bank reserves and the interest rate? How will GDP be affected? Explain the causal chain. Explain how interest rates and bond prices are related to one another. Why is this important for ..
Three alternatives are being considered. Alternative A has a useful life of 3 years; Alternative B, 5 years; and Alternative C, 6 years. Using the longest life (LCM) approach, what is the planning horizon?
Use this table to find opportunity cost of production for footballs and basketballs: What is the opportunity cost of OH producing a football? basketball? What is the opportunity cost of MI producing a football? basketball?
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