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Firm uses 15 units of K, Price of K =$400 per unit,, Price of good =$100; Wage per worker =$40,000 L Q 1 800 2 1900 3 2700 4 3350 5 3775 6 4100 A. Does this represent the SR or LR? Explain. B. What is the optimal number of workers this firm will hire? C. What are the profits at this number of workers? D. Is the underlying total cost curve for this firm quadratic or cubic? Explain.
If the Fed sells $20 million worth of government bonds to the public (open market sale), will the lending capacity on the banking system increase or decrease? By how much will the money supply change? Assume the required reserve ratio to be 0.1.
Consider a game that game theory people refer to as the “ultimatum game.” We will refer to our two players as the “offerer” and the “decider”. How the game works is that the offerer proposes a way to split $1000 between the two players. Explain which..
In which of the following situations would it be MOST advantageous to be borrowing?
Farm workers in Oaks Farmville face a 1/198 probability of death at work and each of them receives a yearly wage of $61,000. Farm workers in Valley Farm face a 1/54 of death at work. Assume that both kinds of job require the same level of skills, eff..
________ refers to the additional revenue gained from selling one more unit.
Purrfect Pets Inc. is a small company that manufactures a variety of organic products for kittens and cats.A new product, a cat sofa, was created for the dual purpose of a scratching post and place for the cat to lounge. Discuss the arguments for eac..
A stock is projected to pay a dividend of $3 in 1 month. A three month at-the-money European put option on the stock has a premium that is $2.751 higher than the premium for a three-month-at-the-money European call option on the stock. The continuous..
The accompanying table shows a boat manufacturer’s total cost of producing boats. Quantity of Boats Total Cost 0 $ 450,000 1 $ 490,000 2 $ 510,000 3 $ 520,000 4 $ 540,000 5 $ 570,000 6 $ 610,000 7 $ 670,000 8 $ 750,000 9 $ 870,000 1. What is the bre..
Assume that student marks are normally distributed. A random sample of 25 students' marks yield a sample mean of 70 and a sample standard deviation of 10. Estimate the population mean of marks with 95% confidence.
What is the rationale for government to regulate the activities to businesses? How is our economic and social existence shaped by government regulations?
Prove that giffen goods have a positively sloped demand curve and a backward bending price consumption curve.
Suppose the cost function for your firm is: C = 10 +2Q + 5Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $35, What level of output should the firm produce to maximize profits o..
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