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A firm operates using the production technology f(L,K) = √(LK). The wage rate is w = 1, the rental rate of capital is r = 3, and the price of the output is p = 10.
(a) Show that the firm's short-run demand for labor as a function of the fixed level of capital K > 0 satisfies L(K) = 25K.
(b) What is the effect of a marginal change in K on the profit of the firm?
Forecasting models can be divided into three groups. They are:
a tell me why you selected the appropriate exponential smoothing method by commenting on your y data
Suppose it is possible to gain information about the cost so that you will know exactly what the cost will be ($80,000 or $120,000) before submitting a bid. Use a decision tree to find the value of this information.
1. Do you agree with the necessity for autonomy as defined by the cognitive theorists Why or why not 2. What kinds of all-or-nothing thinking have you detected in yourself? How will you stop it
Analyze any comparative advantages and international trade opportunities. Explain the factors that will affect demand, supply, and prices of that product.
Sammy considers 2 wooden pencils to be a perfect substitute for 1 mechanical pencil. The price of 1 wooden pencil is $2, and the price of 1 mechanical pencil is $3. Sammy has an income of $18. What is Sammy's optimal consumption bundle
Peter Higgins is a sales agent for XZY Company. He has an effort cost function of C = e2 and a reservation wage of $1,500. His wage package is W = 1,500 + 0.2Q where the CEO sets the incentive at 0.2 and Q = 200e. Q is the output. If the CEO increase..
Explain how the United States calculates unemployment and why many economist do not find this as a real economic indicator. How is unemployment calculated in other countries? Give two examples. What are your thoughts and ideas on this?
budget deficits are sometimes useful to spur consumption and thus encourage investment in business plant and equipment
If a firm hires a resource in a perfectly competitive resource market A. it must also be a price taker in the product market B. it must also be a monopolist in the product market
A case study in the chapter describes a phone conversation between the presidents of American Airlines and Braniff Airways. Let's analyze the game between the two companies.
The monthly rental rate for a satellite dish antenna is $200. There are 100 residents in the condominium community. The maximum marginal benefit any resident will obtain from the antenna is $50 per month.
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