A firm produces mineral water according to the following hourly production function y = ln(k+1) + ln(l+1), where k is the amount of capital and l the amount of labor used. Suppose that mineral water can be sold for $60 a ton. Capital goods can be rent at the rate of $15 an hour and the wage rate for workers is $10 an hour.

c) If the firm tries to maximize its profit in the long run, how many units of capital should it rent? How many workers should it hire? (10 points)

d) Suppose that the price of mineral water goes up to $70 a ton. Should the firm hire more workers in the long run? Please explain why. (4 points)

Under what conditions do economies of scale serve as an entry barrier?

And do the same conditions apply to learning curves?

Is the EU a success for all nations? Some nations? Has it been harmful to some nations? Explain. minimum 400 words

The average retail price of regular gasoline used by motor vehicles decreased from $3.85 per gallon in March 2012 to $1.76 per gallon in February 2016. The following may or may not be a reason for this decline. Using demand and supply analysis, explain why or why not.

(1)    Use of a new technology called “fracking” to extract oil from the ground

(2)    The economies in most of Europe were deteriorating and heading toward a recession

(3)    OPEC, the cartel of oil producers, decided to keep production of oil at record levels

(4)    Increasing use of hybrid/electric cars in the US

(5)    Lower profits for Exxon, Shell and other producers of gasoline.

The significant drop in price in gasoline used by automobiles may or may not have had the following effects. Explain why or why not.

(1)    Shut down of some oil refineries producing gasoline

(2)    Decrease in sale of hybrid/electric vehicles

(3)    Increase in sale of gas guzzler cars, such as SUVs

(4)    Increase in number of vacations taken by automobile

(5)    Higher price of cross country trips by bus

What are key general facts of Russia's economy?

What are Russia's institutions that affect total factor productivity (ex. rule of law)?

What characteristics of Russia's economy make it interesting?

a. The taxes imposed on gasoline in Barbados is excessive and inequitable to motorists. b. The government of Trinidad and Tobago should increase the minimum wage to $4000 per week to reduce poverty. For parts (a) and (b) respectively, DRAW a market that is initially in equilibrium, labelling the initial equilibrium price and equilibrium quantity. Then show what happens in each market based on the given scenarios. Label the new equilibrium price and equilibrium quantity. Write the given sentence after each scenario in your examination booklet and fill in the blanks with the words “increase” or “decrease” to describe what happens. a. There is an increase in income and the good is an inferior good: The equilibrium price will _______________ and the equilibrium quantity will _______________. b. Buyers expect the price of the good to fall in the future: The equilibrium price will _______________ and the equilibrium quantity will _______________.

PLEASE SHOW DRAWING CLEARLY.

Discuss whether the human capital and signaling models have different implications for each of the following education policies:

a. Providing financial aid to students for college.

b. Introducing a test that high school students could take to provide reliable measures of task commitment and capacity to work effectively in teams.

c. Increasing the age at which students can drop out of high school from 16 to 17.

4. The following relations describe monthly demand and supply for a computer support service catering to small businesses.

Q D = 3,000 - 10P Q S = -1,000 + 10P where Q is the number of businesses that need services and P is the monthly fee, in dollars.

a. At what average monthly fee would demand equal zero?

b. At what average monthly fee would supply equal zero?

c. Plot the supply and demand curves.

d. What is the equilibrium price/output level?

e. Suppose demand increases and leads to a new demand curve: Q D = 3,500 - 10P

What is the effect on supply? What are the new equilibrium P and Q?

f. Suppose new suppliers enter the market due to the increase in demand so the new supply curve is Q = –500 + 10 P. What are the new equilibrium price and equilibrium quantity?

g. Show these changes on the graph.

A country’s government has been running a deficit for the past few years. Suppose this country decides to increase its government spending. Compare the impact of the increase in government spending in a closed economy and an open economy.

A. The countries of Western Europe have greater proportions of immigrants on welfare than are found in the US. Discuss why this difference exists between the US and Western Europe. B. Define the brain drain. Give two separate causes of the brain drain. Further, identify all parties who benefit from the brain drain.

What was Keynes' problem with Neoliberalism?  

US History.

Discuss the farm crisis of the late 19th century. What were the issues and how did the Farmers' Alliances/Populists seek to fix them. Were they successful

1. Economic prosperity persists and the average real income of all citizens increases by twenty percent (20%). What happens to the equilibrium price and quantity of all inferior goods? Why?

2. The cost of producing new car transmissions increases. What happens to the equilibrium price and quantity of cars? WHY?

3.Several new firms enter the new truck market and begin producing trucks. What happens to the equilibrium price and quantity of trucks? WHY?

4. Two new firms begin producing and selling trucks. At the same time, market preferences shift toward trucks and away from passenger cars. What happens to the equilibrium price and quantity of Trucks? WHY?