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Suppose that George operates a laundromat which requires two inputs, capital (K) and labor (L). His production function is Q=3K^(1/3)*L^(1/3).
a) Suppose George desires to produce 90 units of output, and the cost of labor is $27. What is is capital demand curve?
b) Suppose George desires to produce 90 units of output, the cost of capital is $1 and the cost of labor is $27. What is his price elasticity of capital demand? Comment
If you were the Prime Minister of the United Kingdom, in terms of cultural identities. What do citizens of your country (united kingdom) have in common with the migrants? Is there pressure (economic, political, religious) on your to accept migrants i..
Consider the expectations theory (of the term structure) with a term premium. What is the interest rate on a 5-year bond today if the term premium for a 5-year bond is 2% and 1-year interest rates are expected to remain constant at their current leve..
Annual demand and supply for the Entronics company is given by:QD = 5,000 + 0.5 I + 0.2 A - 100P, and QS = -5000 + 100P
q.assume the production function of the company isq 7v - 0.5v2where q is the production and v is the number of
Illustrate what we didn't realize at the time was that our fixed costs were underestimated by at least 30 percent. This means that we will have to adjust our price upward by at least.
Assume a competitive industry in long-run equilibrium. The industry exhibits increasing costs. All the workers in the industry earn the minimum wage. Suppose the minimum wage is increased by 15%. What is the short-run response of the industry and the..
In what ways does the Krugman model of trade differ from the Heckscher-Ohlin model of trade? Carefully explain. In what ways does the Linder theory of trade differ from the Heckscher-Ohlin model of trade? Carefully explain.
Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Now, assume that discriminatory actions take place preventing men from becoming doctors. Show the effects of discrimi..
Xaquane and Yullare are obscure but talented 18th century painters. The world’s stock of Xaquanes is 100 and the world’s stock of Yullares is 70. The demand for each painter’s work depends on its own price and the price of the other painter’s work. W..
Suppose that in a particular country, GDP per capita was $ 10,000 in 1960 and $ 40,000 in 2008. Using the rule of 72 (not a calculator), approximate the annual growth rate of GDP per capita.
What are the three actions that the federal government can take to fight recession using fiscal policy?
Discuss what interests you the most about econometrics and state why.
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