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Will the Poorer Country Catch Up? Suppose one country has a GDP that is one-eighth the GDP of its richer neighbor. But the poorer country grows at 10 percent a year, while the richer country grows at 2 percent a year. In 35 years, which country will have a higher GDP? (Hint: Use the rule of 70.) 8.1
Frisbees are produced according to the production function q = 2K+L where q =output of frisbees per hour, K =capital input per hour, L =labor input per hour. a) If K = 10, how much L is needed to produce 100 frisbees per hour
Determine the output level, price, and profits that will occur in long-run equilibrium. Assume a high-price, low-output scenario assuming a parallel shift of the firm's demand curve. Be sure to explain what you are doing and why.
This years weather was favorable throughout the country, and this years crop will be 110 million bushels, or 10 percent larger than last years. The price elasticity of demand for corn is 0.50.
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"Historians and archaeologists will one day discover that the ads of our time are the richest and most faithful daily reflections any society ever made of its whole range of activities."
Suppose per unit tax, T is imposed on buyers. Then what is the equilibrium quantity and equilibrium price? Now, assume T=30, then what will be equilibrium price and quantity. (Hint: use P is the price producer receives, and P+T is price paid by th..
the demand for its product comes from two types of customers, I and II. Each type I customer (there are 25 of them) has a demand curve given by Q=12-P, while each type II customer (there are 30 of them) has a demand curve given by Q=9-P.
A company is considering buying a new bottle-capping machine. The initial cost of the machine is $325,000 and it has a 10-year life. Monthly maintenance costs are expected to be $1200 per month for the first 7 years and $2000 per month for the rem..
If the MARR is 15% per year and the analysis period is 12 years, use the Present Worth method to determine which alternatives are economically acceptable and which one should be selected. If the total capital investment budget available is $200,00..
Now suppose the firm has the chance to buy an unlimited number of engines from another company at a price of $1,400 per engine. Will this option affect the number of cycles it plans to produce Its price Will the firm continue to produce engines ..
For a two-tailed test with a 0.05 significance level, what is the rejection region when n is large and the population standard deviation is known Greater than +1.65 and less than -1.65 Greater than +1.96 and less than -1.96 Between ±1.65 Between ±..
What are the impact and long-run propensities and explain the nature of potential multicollinearity in the explanatory variables when data for marriage and income is observed each month.
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