Suppose that a firm uses labour and capital in production. The wage rate is $10 per unit of labour and the rental cost of capital is $10 per unit. The firm is currently producing 100 units of labour and the rental cost of capital is $10 per unit. the firm is currently producing 100 units of output by using cost minimizing input combination of 50 units of labor and 50 units of capital.

On an isoquant and iso-cost diagram, show than an increase in output from 100 units to 150 units will result in higher short-run total cost, average cost and marginal cost than in the long-run counterparts.

Please explain why its correct

17. Since the marginal product
quantity of output divided by the change in the quantity of labor, it stands to reason that:

a. a firm would never operate in the range where marginal product is negative.
b. a firm would never operate in the range where marginal product is decreasing.

c. marginal product will continually increase as the firm produces more.
d. there is no predictable relationship between marginal revenue and marginal cost.

Answer: _____

18. Adding more fixed inputs to the production process shifts the total product curve _______ and the marginal product curve _______.

measured on the horizontal axis
measured on the horizontal axis

of labor equals the change in the

a. upward; upward
      b. upward; downward
      c. downward; upward
      d. downward; downward

Answer: _____

19. The total product curve for blueberries slopes _______ reflecting that as more workers are employed more blueberries are produced, and becomes ______ because the marginal product of labor declines as more and more workers are employed.

      a. upward; flatter
      b. upward; steeper
      c. downward; flatter
      d. downward; steeper

Answer: _____

20. Which of the following
FALSE?

      a. The marginal cost
      cost curve.
      b. The marginal cost
      marginal returns.

statements about the marginal cost curve is

curve is equal to the slope of the total

curve slopes upward because of diminishing

c. Marginal cost is equal to the change in total cost generated by producing one more unit of output.
d. Marginal cost depends upon the level of fixed costs.

Answer: _____

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

            Qa = 20 – Pa            where a is adult market

            Qc = 30 – 2 Pc         Where c is children market

            QT = 50 – 3 PT         where T is the two markets combined

Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit:

1. Calculate the price, quantity and profit if the amusement park charges a different price in each market.
2. Calculate the price, quantity and profit if the amusement park charges the same price in the two markets combined.

Why do firms buy back the shares from investors? What do they gain? Briefly explain the economics of such a decision and its effects on value of a firm.

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: Qa = 20 – Pa where a is adult market Qc = 30 – 2 Pc Where c is children market QT = 50 – 3 PT where T is the two markets combined Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit: A) Calculate the price, quantity and profit if the amusement park charges a different price in each market. B) Calculate the price, quantity and profit if the amusement park charges the same price in the two markets combined.

Report on the development of intra-industry trade of Morocco

Research an emerging market in Tourism BESIDES Slow Tourism, Adventure and Extreme Tourism, Medical Tourism, Vocation & Real Estate Tourism, Space Tourism and Marijuana Tourism.

What did you find?

2) Consider the oligopolistic market for robotic lawnmowers.

• The cost function of all firms is given by C_i = 180Q_i
• Demand for robotic lawnmowers is given by Q_D = 24,000 – 80P

1. Find the optimal production for one firm, the total quantity, and the price as functions of the number of firms n
2. Suppose n = 4. Find numeric values for the variables in 2)a)

1. What are the similarities and differences between the Balance of Payments (BoP) and the national income and product accounts (NIPA)?

2. What is the breakdown of the capital Account by its main items, and what item in that account contributes to GDP?

3. What part of the BoP reflects remittances sent by immigrants to their families back home and can they be thought of as more related to our exports or our imports?

Finance Minister Eric Girard announced that the province will give up to $100 extra weekly to cashiers, grocery stockers, delivery people, and everyone who keeps the province running.

Girard said that the program is meant to ensure that those essential workers will earn more by working than by applying for the federal government's emergency benefits program (CERB), which provides Canadians struggling financially with $2,000 a month.

Using the logic of supply and demand, explain what is happening in the low-wage labour market that characterizes many of these essential services. Make sure your answer addresses the following question:

1. Explain what this policy does for the distribution of income, particularly on the wages of essential workers in low skilled sectors of the economy. How does this policy affect the incentives of employers and what might be the long-run implications of this policy?

Yasmin Jamieson is 18 years old and is about to graduate from an Ottawa high school. She must decide: which university will she attend in September? She wants to follow a 4-year undergraduate degree in Economics. Yasmin has been accepted to attend McMaster University in Ontario, Canada, and Stanford University, California, United States. She faces only one annual cost for the each of the four years she is in university: tuition. Annual tuition at McMaster is $15,000. At Stanford, annual tuition is $45,000. Assume that she is not considering the option of working after high school. Therefore, do not consider the foregone labour earnings when going to university. After graduation, Yasmin has a strong interest in Labour Economics and hopes to receive job offers from Capital Economics (near Hamilton, Canada) and from Insight Economics (near Stanford, USA).

She knows that these two companies offer different annual salaries depending on where one has graduated. Capital Economics will offer a McMaster graduate an annual salary of $128,000 and a Stanford graduate an annual salary of $160,000. Insight Economics will offer a McMaster graduate an annual salary of $175,000 and a Stanford graduate an annual salary of $250,000.

Let’s assume the following:

• Yasmin’s objective in her decision-making is to maximize the present value of net future income over her career (that is, income net of costs).

• She is certain to get job offers from both companies.

• Please ignore differences between these two cities in terms of income taxes, the exchange rate, the cost of living and moving costs.

• These annual salaries do not change for the duration of her expected career, from age 22 to 65. Hint: this time horizon is sufficiently long to use the present value (PV) approximation formula.

• However, the present value of annual tuition costs should be calculated using the expanded present value formula.

• The market interest rate is 5%. Which university would you recommend to Yasmin? Please show all your calculations and explain your recommendation. (20 points)