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Assume that a firm employs labor and capital by paying $40 per unit of labor employed and $200 per hour to rent a unit of capital. Given that the production function is given by: Q= 10L - L^2 +60K -1.5K^2, where Q is total output, L is labor an K is capital , What is the firm's optimal combination of capital and labor?
In the short run the typical company increases its output but its total cost also rises. Hence, the effect on the company 's profit cannot be determined without more information.
Illustrate what would be effect of policy described in part (c) on economy's stability over business cycle.
if the price is greater than the average variable cost and less than the average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm.
This marginal cost is the only cost associated with the product. Illustrate what are the profit-maximizing price also quantity. Illustrate what are your optimal price also quantity.
A residential rental property is acquired during the first month of the taxable year, at a total cost (including transaction costs) of $1,200,000.
Compute the arc price elasticity of demand for the price of paperback books falling from $7.00 to $6.50, the quantity demanded rises from 100 to 150.
what would volume of output would the two alternative yield the same profit 3-if expected annual demand is 12000 units which alternative would tield the higher profit.
Illustrate what is the most effective process of decreasing the quantity of drugs consumed and decreasing the amount of drug-related crime.
Based on costs and revenues above, which should you do. Elucidate and show any relevant calculations.
Show the effects of an increase in the total factor productivity, z, on the Laffer curve, on the equilibrium tax rate, and on consumption, leisure, the quantity of labor supplied, and output.
The respective forecasts were 120 for all four years. Illustrate what is the resulting MAD value that can be computed from this data.
Illustrate what are the pros and cons of using expansionary and contractionary fiscal policy tools under the following scenarios: depression, recession, and robust economic growth.
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