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Discuss why both demand and supply analysis and marginal analysis should be used in making rational business decisions. Please include specific examples in your discussion posts.
Microeconomics, Economics
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Question: An economy is characterized by the production functionY = A (K^a ) (L^(1-a) ). The capital share of output is 50%, the depreciation rate is 10%, the investment rate is 10%, the technology constant is 6 and the ...
Problem: Consider the following production function f(K, L) = 2K + 3L. Suppose w is the wage paid for each unit of labor, and r is the capital return. a) What kind of returns to scale has this production function? b) Sol ...
Question: Four students from your economics class are sitting in a local restaurant discussing the market for coffee. Below are quotes from each of the four students. All of the following quotes are logically correct exc ...
Question: List and discuss the four economic goals presented in class and in the textbook. Then discuss how the different pairs of goals are compatible(They work together)or competing. The response must be typed, single ...
Question: What is the equivalent uniform annual amount, at the end of years 3-7, of a uniform series of cash flows of 2,000 during years 2-9. the interest rate is 9% per year. The response must be typed, single spaced, m ...
Question: Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each b ...
Question: Hypothetically, imagine if US abolishes $100 bill and replace it with a different bill. What according to you will be the repercussion of such a change of domestic market and international market. (Do research, ...
Question: In your opinion, how would you summarize interest rates and decision making in plain English to someone who is considering making a car or house purchase? How would you advise them to structure borrowing money ...
Question: Over the next three years, a firm is expected to earn economic profits of $120,000 in the first year, $140.000 in the second year, and $1000,000 in the third year. After the end of the third year, the firm will ...
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