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Consider the following: wagner tool produces output according to q = 2k1/2 L1/2, where K is the amt of capital used and L is the amt of labor employed. wagner is constrained in the short run to use 16 units of capital. labor cost $8 per unit, capital cost $2 per unit. at q output = 48, and the associated use of labor, what is the avg and marginal product of labor respectively?
a. 1.33, 0.66
b. .66, 1.33
c. 3, .25
d. 1, 1
A firm plan to borrow $900 via issuing debt instruments. The firm can issue a simple loan, a fixed-payment loan or a coupon bond. If the interest rate is fixed at 8%, the face value of the coupon bond is $1000 and the fixed-payment loan has 5 payment..
Estimate the deadweight loss from monopoly. Assume, in addition to the costs above, the musician on the album has to be paid. The company is considering four options.
You are the manager of a monopolistically competitive firm. The inverse demand curve you face is P = 50 – 4Q. Your cost function is C(Q) = 10 + 2Q. What level of output should you produce to maximize profits? What is your profit and what will happen ..
Explain the following practice/policy in terms of externalities. Charitable donation over HK$100 is tax deductible in Hong Kong. Why are some of the products, such as gasoline, taxed more heavily than other goods such as food? Explain your answer in ..
Find a 95% confidence interval for the true percent of car owners in this city who recieved a speeding ticket this year. Evalute your results to the nearest hundredth of a percent.
Bush lowered taxes in the 2001 recession and his tax cuts continue. Obama has increased government spending through his stimulus packages. What effect should these expansionary policies have on the AD and AS curves? How should they shift? What should..
q.as an analyst at the treasury department you have been asked to predict the behavior of key macroeconomic variables
State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.
The inflation rate from 2010 to 2011 for a good j is defined to be Ij = (Pj/pj) ? 1, where pj was the price in 2010 and Pj was the price in 2011 (assuming for simplicity that the prices stayed fixed throughout each given year.
Consider again the case of a country that suffers an Ebola epidemic that reduces the population by 20%. (a) Given your answer for problem 8 in problem set 1, draw the Aggregate Demand and Aggregate Supply analysis (in the usual output-inflation graph..
Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop commu..
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