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A firm has a production function described as follows: "Weekly output is equal to the square root of the minimum of the amount of capital and the number of hours of labor used per week." Suppose that the cost of a unit of capital is r and the price of a unit of labor is w and the level of output is y. Write down the long-run total cost as a function of w, r, and y.
Suppose vehicle is introduced into a central business district (CBD), doubling speed of travel for information exchange. Who financially benefits from innovation.
Illustrate what should be the production level if the producer operates in a monopolistic competitive market where the cost of software at each possible quantity
what would the benefits of each action be (besides emissions reduction)? what would the costs of each action be? How would you decide what was the best level of emission reduction?
If interest rates remain unchanged, what is the expected capital gains yield, stated as a percentage, over the next year for Bond A and for Bond B.
Calculate real GDP in each year, and the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both McDonalds's also Wal-Mart.
Suppose the current price of gasoline at the pump is $1 per gallon and that 1 million gallons are sold per month. A politician proposes to add a 10¢ tax to the price of a gallon of gasoline.
How is an investor's choice of which security to purchase related to his degree of risk aversion?
Government purchases rise to 1440. How does this increase change the equation describing desired national saving? Show the change graphically. Illustrate what happens to the market-clearing real interest rate.
Explain is a high degree of market concentration a boon or threat to consumers. What is the strongest argument on either side.
These investors seek unlimited access to investment consultants and are willing to pay up to $10,000 annually for no fee-based transactions.
The interest rate is 25% (0.25), and there is no inflation. Illustrate what is Mandy's optimal consumption in period 1.
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