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  1. What key decisions does knowing the own price of elasticity of demand help a manager make, and show how a monopolist would use it?
  2. What are the returns of scale for this production function: Qs = 2L^.3K^.8 nd why?
  3. Why is it usually a mistake to outsource production to the country with the absolutely lowest wages? Be sure to indicate which optimizing condition you should use to make this decision.
  4. The nutritionist at a hog farm can substitute corn for soy to some extent in the pigs diet. Her objective is to fatten the hogs at the least cost. What information does she need to help her make this decision? How will she use the information?
  5. The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal rate of technical sustitution between hours of labor and hours of machine time is 1/4. What is the marginal product of capital?
  6. is it better to shift your demand curve to the right or to slide down it? Why or why not?

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