Questions
Joe owns a tree cutting company. His firm uses tree cutters (L) and equipment (K) in...

Joe owns a tree cutting company. His firm uses tree cutters (L) and equipment (K) in
cutting trees. Suppose that the cost of hiring a tree cutter (w) is $10 an hour and the cost of using
equipment (r) is $30 an hour. We will consider how much K and L Joe should use to cut 75 (i.e., Q
= 75) trees. (Make sure that you specify intercepts, optimal amounts of K and L and isoquants
clearly on graphs.)

1.)
Suppose that Joe’s production function is Q = 15K + (2.5)L. Marginal product of capital
MPK = 15, and marginal product of labor MPL = 2.5. What are the values of the cost-minimization
bundle of K and L? Draw his isoquant and isocost curves and identify the firm’s cost minimizing
combination of K and L to represent the cost minimization solution on the graph.

2.)
Suppose that Joe’s production function is now Q = KL. Joe’s marginal product of capital
and labor are MPK = L and MPL= K, respectively. What are the values of the cost-minimization
bundle of K and L? Draw his isoquant and isocost curves and identify the firm’s cost minimizing
combination of K and L to represent the cost minimization solution on the graph.

3.)
Suppose that the wage rate increases to $15 per hour. For each of the production functions
identified in parts (a) and (b), identify what will happen generally to the optimal amounts of K and
L. (Just identify whether K will increase, decrease or stay the same and whether L will increase,
decrease or stay the same. You do not have to solve for the exact changes.) Justify your answers
using graphs.

In: Economics

Can you give an example in the U.S. history about deregulation of banks? And please describe...

Can you give an example in the U.S. history about deregulation of banks? And please describe the likely (positive or/and negative) effect of your example on banking industry.

In: Economics

Given C= 102 + 0.75Yd,                    I=150 – 100i, Ms =300, LT=0.25Y, and LA = 124-200i...

Given C= 102 + 0.75Yd,                   
I=150 – 100i, Ms =300, LT=0.25Y, and LA = 124-200i

2.1 Find commodity market equilibrium i.e. IS curve

2.2. Find money market equilibrium i.e. LM curve

2.3. Find equilibrium income

2.4. Find equilibrium interest rate

Suppose money supply increases by $17,

2.5. Find the amount of new equilibrium income

2.6. Find the amount of new interest rate

Suppose autonomous investment drops down by $97

2.7. What is the amount of new equilibrium income?

2.8. Find the new interest rate

This information was given at the top if you need it.

Given the following information

C         = Co + b(Y-T)

I           =Io + Iy - IrR

G         =Go

T          =To

Md       = Lo – LrR + LyY

Ms           = Mo

Where C0 = Autonomous consumption

b= MPC,

Iy= income sensitivity of investment (Income elasticity of investment)

Ir= interest elasticity of investmen

Lr= interest elasticity of money demand

Ly= income elasticity of money demad

I= investment, G= Government spending, T = Taxes

R= interest rate

Y= GDP

In: Economics

Moran vs. Faberge (1975) At a slumber party held at the home of Louis Grigsby, Randi...

Moran vs. Faberge (1975)

At a slumber party held at the home of Louis Grigsby, Randi Williams poured Faberge “Tigress” cologne into a burning candle in order to make it a “scented” candle. The perfume, composed of 82% alcohol, was highly flammable and caught fire. The resulting flames caused severe burns to the neck and torso of Randi’s friend Nancy Moran. The Moran family sued the Williams family and the Grigsby family, and both were found not guilty. The Williams family also sued the Faberge company, on the basis of the fact that there was no warning on the product indicating that it was highly flammable, even though the manufacturer knew that it was highly flammable. The trial court found Faberge liable for $30000 in damages. Faberge appealed.

The appeals court noted that manufacturers (as of 1975) had a duty to “produce a safe product, with appropriate warnings and instruction when necessary”. Thinking in terms of the Hand rule, it noted that printing a warning on a label is indeed a very cheap precaution, but that there also must be some identifiable benefit to printing the warning for failure to print a warning to become failure to meet a duty.

The appeals court then ruled against Faberge.

QUESTION:

1. Did Faberge fail in its standard of care according to a Hand rule? (That is, if there had been a warning of flammability on the product, would the benefit to society in the form of fewer losses due to accidents outweigh the cost of printing the warning?) Or is the ruling wrong, because it is too costly to ask companies to foresee and try to safeguard or warn against every bizarre type of product use?

In: Economics

Moving from autarky to free trade generates gains for a country. What are the sources of...

Moving from autarky to free trade generates gains for a country. What are the sources of these gains and explain how each results in a gain for the country.

In: Economics

I want 250 words essays as to how COVID - 19 will lead to various losses...

I want 250 words essays as to how COVID - 19 will lead to various losses in Bank owing to Market Risk, Credit Risk, Operational Risk, Liquidity Risk, ALM risk, Capital Adequacy risk, Resilience risk and so on. (In Indian Context).

(NOTE: I WANT A good and well explained answer. no plagiarism)

GOOD ANSWER WILL BE GIVEN THUMBS UP :)

NOTE: I AM POSTING THIS QUESTION MULTIPLE TIMES. IF ALREADY ANSWERED BY YOU, THEN DON’T ANSWER IT AGAIN. I WANT DIFFERENT POINTS OF VIEW.  

IF YOU ANSWER IT AGAIN, THEN THUMBS DOWN WILL BE GIVEN.  

In: Economics

This is an essay question: What is the reason the Central Bank was Created and describe...

This is an essay question:

What is the reason the Central Bank was Created and describe the US Financial System

In: Economics

4 a. Explain the two ways that an economy could close an inflationary gap. Explain what...

4 a. Explain the two ways that an economy could close an inflationary gap. Explain what happened to price and GDP in each solution. Which “solution” created lower prices? List a pro and con of each “solution”.

b. What policy would you put into effect to help reduce the inflationary gap in an economy like Canada? How would businesses and/or Canadians be effected?

In: Economics

Without using any examples from the textbook, give an example of a brand that is positioned...

Without using any examples from the textbook, give an example of a brand that is positioned in each of the following methods. Explain your answer.

1. Postioned by Salient Attributes

2. Positioned by Symbols

3. Positioned by Competion

In: Economics

INFLATION AND THE PHILLIPS CURVE explain with your own words 1 What is the Phillips curve?...

INFLATION AND THE PHILLIPS CURVE

explain with your own words

1 What is the Phillips curve?

2 What is the relationship between inflation and growth?

In: Economics

An industry consists of three firms with sales of $205,000, $745,000, and $305,000. a. Calculate the...

An industry consists of three firms with sales of $205,000, $745,000, and $305,000. a. Calculate the Herfindahl-Hirschman index (HHI). Instruction: Enter your response rounded to the nearest integer. b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $205,000 and $305,000? Yes No

In: Economics

Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion....

Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 2,685. Case’s share of that market was 9 percent, while Fiat comprised just 5 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase? Based only on this information, is the Justice Department likely to challenge the merger according to the Horizontal Merger Guidelines? No. Yes. Possibly - but other factors will be considered

In: Economics

One important task for the government is to redistribute income. Explain, why (some) redistribution could be...

One important task for the government is to redistribute income. Explain, why (some) redistribution could be a good idea, and why (too much) redistribution could be a bad idea. Remember to contextualize, define, exemplify, and illustrate relevant concepts – if you wish, you can include data for any country to support your analyses.

In: Economics

2. COVID-19 shock (18 marks) a. Discuss the impact of COVID-19 shock on each component of...

2. COVID-19 shock

a. Discuss the impact of COVID-19 shock on each component of output (recall the income-expenditure identity Y = C + I + G + NX).

b. Discuss the impact on the Canadian labour market, specifically employment number and unemployment rate.

c. There are many examples of asymmetric impacts of the virus. Discuss the impact of the quarantine on different types of consumption: durables, semi-durables, and non-durables. Discuss the impact on the services sector versus manufacturing sector.

d. Explain how the upcoming recession due to COVID-19 is different than the Great recession of 2008-2009.

In: Economics

The existence of externalities can lead to inoptimal equilibrium if the markets are left to themselves....

The existence of externalities can lead to inoptimal equilibrium if the markets are left to themselves. Based on your understanding of externalities, first, explain negative and positive externalities. How can the government intervene in order to assure a socially optimal equilibrium? Remember to contextualize, define, exemplify, and illustrate relevant concepts.

In: Economics