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Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2 . The turnover cost per labor is (0.36)/(w/p).
What happens to t as real wage increases?
What happens to t as labor increases?
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope.
What assumption along with diminishing marginal product implies diminishing marginal rate of technical substitution?
q1. why i having a nominal anchor important for you to achieve inflation targets ? what is the drawback of using a
A cappuccino vending machine is designed to dispense an average of μ oz per cup. If the ounces per fill are normally distributed, with a standard deviation of 0.4 oz, what value should μ be set at so 6 oz cups will overflow only 2% of the time?
If the Fed wants to leave the US money supply unchanged by the foreign exchange market intervention, how will they conduct a sterilized intervention?
Let’s assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between the short run and long run in the example to bringing about more tables for t..
Consider a pharmaceutical industry with two producers, P zer and Roche. The former is based in the U.S. will the latter is based in E.U. If both produce they both get a pro t of -20. If one produces it gets a pro t of 300. Describe this scenario in a..
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities.
When the prices reduces to $9 the restaurant sells 200 per day. Provide the absolute value of the price elasticity of demand.
Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 5P, where Qs is the number of pounds pr..
Illustrate what was the value of the government expenditure multiplier. Suppose that investment declined by $40 to a level of $60. What will be the new level of equilibrium income.
Outline the First and Second Welfare Theorems and their implications for the role of government. How can we use them to analyse the trade-off (if one exists) between efficiency and equity?
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