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Let a firm’s long-run production function be
q=0.1LK+3L^2K-0.1L^3K
Assume that in the short-run the firm’s labour input is fixed at 10 unit.
- What is the short-run average and marginal product functions?
The perticular information needed to calculate each metric should be discussed. For each metric discuss the appropriate target value and the actions that need to be taken to achieve the target.
A machine with a ten year life is to be depreciated by the MACRS method. The machine has a 1st cost of $30,000 with a $5,000 salvage value. It's yearly operating cost is $7,000 per year.
According to the rule of 70, how long will it take for your income to double if you get a 5 percent raise every year? If you start work at the age of 23 earning $40,000 per year and get a 5 percent raise every year, how much will you be earning if yo..
How Disney dealt with the Principal - Agent Problem: In 1984, the Walt Disney Company brought in Michael Eisner, a Paramount executive as CEO. The firm's board of directors agreed to pay Eisner a salary of $750,000, plus a $750,000 bonus for signi..
Robot X has a first cost of $84,000 an annual maintenance and operation (M&O) cost of $31,000, a $40,000 salvage value, and will improve net revenues by $96,000 per year. Robot Y has a first cost of $146,000 an annual M&O cost of $28,000, a $47,00..
Explain the differences among the long run and short run aggregate supply curves. Consider these differences and explain how an expansionary gap occurs.
A plot of land costing $200,000 was acquired on January 1, 2001. The price level was 120 on that date. One-quarter of the land was sold on December 31, 2001, for $60,000 when the general price level was 180. Compute the following holding gains:
Full employment income is estimated to be $11,000. The current interest rate is estimated to be 4.178 recent. While last year total business investment spending was $900.
Suppose fertility motives in rural areas of developing countries. Assume that mortality among children remains constant, but incidence of that mortality shifted from early childhood to late childhood.
Pawel spends half of the year working in Britain where he consumes British food q and half of the year in Poland where he consumes Polish food Q.
In many industries, such as supermarkets, banks, cell phonecompanies, etc., because of mergers our choices as consumers arereduced to two or three competitors. Do you think thisis good for the economy
How would market forces affect the amount of time the proven oil reserves will last, assuming no new oil reserves are found and that the demand curve remains unchanged?
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