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Suppose there are two inputs in the production function, labor and capital, and these two inputs are perfect substitutes. The existing technology permits 1 machine to do the work of 3 workers. The firm wants to produce 100 units of output. Suppose the price of capital is $750 per machine per week. What combination of inputs will the firm use if the weekly salary of each worker is $300? What combination of inputs will the firm use if the weekly salary of each worker is $225? What is the elasticity of labor demand as the wage falls from $300 to $225?
Substitution and income effects of a change in price of a good may be used to explain the:
Government budget going from deficit to surplus and the simultaneous enactment of an investment tax credit.
the world price of coffee rose about 100%. What was the approximate price elasticity of demand for coffee? was the demand elastic or inelastic?
Suppose the U.S. and Mexico both produce 2 goods, tablets and cereal, using 2 inputs, capital (K) and labor (L). The production of tablets is capital-intensive, and that of cereal is labor-intensive. The U.S. is a capital-abundant country, and Mexico..
The aggregate expenditure model is built upon which of the following assumption!! The real-balance interest-rate and foreign purchase effect all help explain!! The consumption schedule directly relates!!
Do you agree with the US automakers' assertion that having to pay healthcare and post-retirement workers to the labor force negatively impacted US comparative advantage in the auto industry? Why or why not?
q. for all qualitative non-numerical graphs be sure to label all curves and axes carefully. explain how both initial
Client agencies are the agencies that exist principally to serve the needs of certain interest groups or clients. The first group to be created was:
Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective.
Movie time is a theater chain thinking of opening a new theater in a town. It is trying to decide whether to build a large theater or a small one. Estimates indicate that the small theater size would be large enough to handle demand, but Movie time i..
q1. during the purchasing decision evaluation stage the consumer forms preferences among the brands in the choice set.
In jury selection, one cannot exclude potential jurors on the basis of race or other discriminatory criteria. One question is if this prohibition against discrimination should extend to potential jurors that have physical or mental disabilities. How ..
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