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A firm produces output, measured by Q, which is sold in a market in which the price is 4, regardless of the size of Q. The output is produced using only one input, labor (measured by L); the production function is Q(L) = 10L. Labor is supplied by competitive suppliers, and everywhere along the supply curve the elasticity of supply is 3. The firm is a monopsonist in the labor market. What wage rate will it pay its workers?
Assume the following data for a country: total population 500, population under 16 years of age or institutionalized 120, not in labor force150, unemployed 23, and part-time workers looking for full time jobs 10.
Assuming an interest rate of 5% per year, determine the benefit-cost ratio for the proposed facility. Should the Council approve the proposal?
You want to smooth consumption such that consumption this year equals consumption next year (that is C1=C2.) Solve for consumption this year and next year. What is your saving (S)?
Now consider the production of Good Y. Unlike manufacturing Good Y, in this case, humans and robots are complements. The production function for Y is given by Y=f(H,R)=min(H,R). Again, the wage for humans is $15/hour
consider an economy that produces only two goods fresh apricots and dried apricots. in this economy the technology of
The Oil Price Information Center reports the mean price per gallon of regular gasoline is $3.79 with a population standard deviation of $0.18. Assume a random sample of 40 gasoline stations is selected.
Suppose that demand for cartel's oil is given by P=50-.1Q where P is the price per barrel and Q is the quantity produced in barrels. If the cartel's aggregate marginal cost is given by MC= 10+0.2Q what is the cartel's profit maximizing price of oi..
An international corporation located in Country A is considering a project in the United States. The currency in Country A, say X, has been strengthening relative to the U.S. dollar; specifically, the average devaluation of the U.S. dollar has bee..
due to a recession that lowered incomes the 2008 market prices for last-minure rentals of u.s. beach -front properties
If the entire amount of Hometown Bank's new loans is spent and the funds are deposited in Bank B, by how much can Bank B increase its loan making?
You just bought a bagel shop. A market study shows your customers are willing to pay for a bagel into 9 equal-sized groups: ($3.00, $2.75, $2.50, $2.25, $2.00, $1.75, $1.50, $1.25, $1.00).
An economy has a single consumption good produced using labor and a single consumer. The production process has decreasing returns to scale. Explain the derivation of the optimal commodity tax when profit is not taxed.
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