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Suppose a firm is currently using 500 laborers and 325 units of capital to produce its product. The wage rate is $25, and the price of capital is $130. The last laborer adds 25 units to total output, while the last unit of capital adds 65 units to total output. Is the manager of this firm making the optimal input choice? Why or why not? If not, what should the manager do?
1a cut in government spending a decrease in income abroad an increase in taxes or an expectation that future consumer
Inflation is at 1.2% and relatively stable at the level. The GDP is at $13.6 trillion. Assume that you are on the Council of Economic Advisors which is the group that advises the President on economic policy issues.
17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal
Discuss how the article relates to concepts & theories (international investment) examined (clearly note the concepts & theories being illustrated)
part 1. annie has an income of 120 an hour popcorn cost 6 a bag and cost 5 a six pack cola.a.draw a graph of annies
More precisely, buyer and seller play a game in which they report their valuation. The rules of the game are as follows: if the seller reports c' and the buyer reports v', the object is transferred from seller to buyer with probability
a assume that the consumer price indexnbsp cpi for the period 2004 -2008 has the following valuesnbspnbspnbspnbsp
a. in early march we received the news that in february the economy added 227000 new jobs exceeding expectations. at
make a recommendation for policy action that should be undertaken at the next federal open market committee meeting.1.
folk wisdom has it that when people lose their jobs they drown their sorrows in drink.economists have long challenged
The money supply of a country equals the sum of monetary base times the money multiplier. Monetary base equals the sum of domestic reserves and foreign reserves. Domestic reserves include the domestic government securities. The foreign reserves in..
Why does international trade occur What does it mean to run a deficit in the merchandise trade balance Distinguish between a tariff and a quota. Who benefits from and who is harmed by such restrictions on imports
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