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Assume that safety in the workplace is costly to provide for a manufacturing firm. Draw an isoprofit curve map for the firm with the wage rate on the vertical axis and risk of injury on the horizontal axis. Explain why the graph looks as you have drawn it.
Show the effects of an increase in the total factor productivity, z, on the Laffer curve, on the equilibrium tax rate, and on consumption, leisure, the quantity of labor supplied, and output.
Explain why only two of the three objectives can be achieved at any point in time also they want to fix the nominal exchange rate, in order to stabilize the price level.
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. How much labor does he employ if the price of each pizza is p = $12 and the hourly wage is w0 = $6? [Hint: In this case, i..
Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
Suppose you have a budget of $52 to spend of pretzels and beer. Your utility function is U = 15p + 18b – 0.5p2 – 0.5b2. The price of a small bag of pretzels is $2, and the price of a pint of beer is $4. Does the utility function indicate a relationsh..
q. a. will a progressive medical tax scheme i.e. people with higher income face a higher medicare tax rate benefit the
If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make mor..
Advise Steve whether he will able to rely upon his insurance policy. Support your answer with relevant cases and legislation.
Clarify why might the Homo sapiens production possibilities curve have shifted outward to right much more rapidly than persons of Neanderthals.
A monopolist has two sets of consumers. The demand for one set can be described by Q1 = 5 ? p. For the other set, the demand is Q2 = 10 ? p. The monopolist faces constant marginal cost of 2. Derive the monopolist’s total demand if the two markets are..
A purely competitive wheat farmer can sell any wheat he grows for $30 every bushel. His five acres of land
adam smith rejected utility as a foundation for value. he illustrates this rejection in his famous diamonds and water
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