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This is for a microeconomics class
Suppose a company incurs the following costs: labor, $600; equipment, $300; and materials, $200. The company owns the building, so it doesn't have to pay the usual $900 in rent.
What is the total accounting cost?
What is the total economic cost?
If the company sold the building and then leased it back, what would be the change in
a) Accounting costs?
b) Economic costs?
You start to work for a company that pays you wage $x per hour. The company then offers a raise to any employee that receives a master’s degree that is very difficult to get, yet has no direct benefit to job performance. a) Explain the company’s reas..
Firms pay efficiency wages because these wages:
With flexible exchange rates, trading partners usually are better off if they coordinate their monetary and fiscal policy. Coordination allows: Note: you may have to solve this one by eliminating possibilities.
Consider the second stage of competition between Samsung, HTC and Sony. Once Apply has chosen some output level q1, Samsung, HTC and Sony will compete simultaneously over their product quantities. Write down the best response functions for Samsung, H..
A man is planning to retire in 20 years. money can be deposited at 6% interest compounded monthly, and it is also estimated that the future general inflation rate will be 4% compounded annually. What amount end of month deposit must be made each mont..
Given the Cobb-Douglas production function (a) Graph the function (b) Show that the function displays diminishing marginal product. Explain what you are doing (c) Suppose the capital stock increases, what happens to the slope of the function?
Suppose your wage rate is determined by WAGE = −19.68 + 2.52EDUC + 0.55EXPER − 0.007EXPER2 where EDUC is years of schooling and EXPER is years of work experience. Using calculus, what value of EXPER maximizes WAGE for a person with 16 years of educat..
From the scenario, suggest substantive ways in which Herb and Renee may use the information in the table in order to ascertain the profit maximizing level of output and price. Provide a rationale for your decision.
Consider a low wage labor market. Workers in this market are not presently covered by the minimum wage, but the government is considering implementing such legislation. If implemented, this law would require employers in the market to pay workers a $..
In the aftermath of the 2008 Financial Crisis, the Basel 3 Accord sought to reduce systemic risk. What are the most serious problems with Basel 2? What are the most significant regulatory improvements of Basel 3? Which provisions do you believe are m..
Assuming that each choice results in the same production costs once installed, under what choice is the firm likely to encounter a greater likelihood that its competitors will also expand their capacities?
The market demand curve for the industry is D(P) = 240 ? P/2. At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?
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