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Suppose that a firm's production function is given by Q = K^0.33L^0.67, where MPK = 0.33K−0.67L^0.67 and MPL = 0.67K^0.33L−0.33. As L increases, what happens to the marginal product of labor? What happens to the marginal product of capital?
MPL increases; MPK increases
MPL decreases; MPK decreases
MPL decreases; MPK increases
MPL increases; MPK decreases
Human Capital Investments. Suppose that the marginal cost of an additional unit of human capital is given by MC = 400 and the marginal benefit is given by MB = 800 ? 25HC , where HC is the number of units of human capital. Graph MB and MC as a functi..
Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =7.07 %, Annual cash flow increases 20% each year, The first year value is $58 and the series is 8 yrs long. Present your answer with 2 decimal pla..
For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.
Which of the following would NOT increase the supply of money in a fiat money economy?
The efficient market hypothesis states that:
What is the SAP (structural adjustment program)? What are the IMF-imposed "conditionalities"? Why did the IMF and World Bank imposed them upon Third World countries during both their debt crises and financial crises?
A flood control project with a life of 16 years will require an investment of $63,971 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 per year in flood damage starting in the ..
Should the Federal Reserve Board of Governors remain independent - What is the strongest argument on either side?
Market failure is the inability of
The following graph gives the long-run aggregate-supply curve (LRAS), the short-run aggregate-supply curve (AS), and the aggregate-demand curve for a particular economy. To return the economy to its natural rate, the Fed could_____ government bonds.
Suppose the own price elasticity of market demand for retail gasoline is -0.5, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,550,000 annually. What is the price elasticity of demand for a representative gasoline reta..
Out of the people who wear seat belts, northeast has 148. Out of the people who don't wear seat belts, northeast has 52. A total of 858 wear seatbelts in the United States. Illustrate what is the probability of seat belt usage by region of the cou..
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