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Suppose the short run production function can be represented by
Q=60,000L^2-1000L^3 then, determine
A) the level labor employement that maximazes the level of output
B) the level of employment that maximazes APL and the maximum APL
Suppose you have the following production function: Q =f(L,K)=10L^1/2K^1/2 in addition, the price of labor is $1 and the price of capital is $4
a) what is the optimal amount of labor and capital if you want to produce 20 units?
b) what is the level of minimum cost ? (Ans L=4 and K=1, Min C=$8)
Out of these options, based on our course, which would be an effective remedy to the problem of zombie firms in East Asian economy？
A) By raising wages, interest-rates, and RMB exchange-rates gradually, to increasing the household income share of GDP and push zombie firms into bankruptcy, while exchanging state assets for banks’ liabilities.
B) By raising national savings and attracting larger flows of foreign capital into China’s financial sector to boost investment and jobs in industry 4.0.
C) By cancelling debts and nationalizing industries for planned production
Q=60,000L square -1000L 3
Suppose you have the following production function , Q=f(L,k)=10L1/2K1/2. In addition the price of labor is$1and the price of capital is$4. So what is the optimal amount of labor and capital if you want to produce 20 units?
The owner of a car wash is trying to decide on the number of people to employ based on
the following short-run production function:
Q 5 6L 2 0.5L
Consider the following policies, each of which aimed at reducing violent crime by reducing the use of guns. Illustrate each of these proposed policies in a supply-and-demand diagram of the gun market.
a)a tax on gun buyers
b)a tax on gun sellers
c) a price floor on guns
d) a tax on ammunition
A firm has found a way of using first-degree price discrimination. Demand for its product is given by
P = 20 – 2Q
Marginal cost is constant and equal to $6.
i) With first-degree discrimination, what will be the profit-maximizing rate of output? How much economic profit will the firm earn?
ii) What will be the profit-maximizing rate of output if the firm does not discriminate and sets one price for all customers? How much economic profit will the firm earn in this case?
Suppose that you are the member of the Board of Governors of
the State Bank.
The economy is experiencing the severe
unemployment. What changes in
A. The Reserve Ratio
B. The Discount Rate
C. Open Market Operations
would you recommend? Explain in each case how the change you advocate would affect
the money supply, interest rate and aggregate demand and authenticate your arguments
with monetary transmission mechanism diagram.
Assume a wheat producing farmer engaging in selling its product under perfect competition market faces cost functions as TC= Q3 -2Q2 +8Q and Average revenue of the farmer is given as Birr 8 . Having this information, A) Determine the optimal level of output and price in the short run. B) Calculate the economic profit (loss) the farmer will obtain (incur
