Take a shot, what do you think? Hint: be sure to distinguish between economic profits and accounting profits.
The firm makes an optimal input choice when the marginal product of one input divided by the price (wage) is equal the marginal product of any other input divided by the price (wage) of that other input. So for printers MP=20, P=20. So MP/P=1 For presses, MP=1000, P=5000. So, ...
I can think of some prisoner dilemma outcome sets that would lead to cooperative behavior C). But I think the most likely outcome in a more traditiona prisoner dilemma game is E) Both players, interested in their themselves, will rat out the other by confessing. Further, coope...
The marginal rate of substitution, in this context, is the amount of additional K you need to hold production constant in because of a decrease in L. (or vice versa) MRS = -MPk/MPl. In the production of X, MPk = (1/2)K^(-1/2)*L^(1/2) MPl = 1/2)L^(-1/2)*K^(1/2) So, MPk/MPl = -L...
Economics (Production Possibility Frontiers)
I think it is line from (X=8.94, Y=0 to (X=0, Y=40). The line will be in a bow-shape. (I presume by: X = K1/2L1/2 means K and L are raised to the 1/2 power.) To see this, plot a graph. (Excel spreadsheets would be very helpful here).
Because they are perfectly postively correlated, the covariance between the q and z is 1.00 Because, (while not explained or pointed out), the possible answers are expressed in percentage terms and the decimal point is moved over 2 places, the answer you seek is B.
First, derive a marginal revenue curve (like you did in your previous post.) So, P=50000, Q=1, TR=50000, MR=50000 P=40000, Q=2, TR=80000, MR=30000 P=30000, Q=3, TR=90000, MR=10000 and so on. b) he makes 3 cars, charges 30,000 each, and makes 10,000 profit. c) He makes 5 cars, ...
see my response to your earlier post.
Demand would simply be the relationship between price and quanty. E,.g, at P=18, Q=1. At P=2, Q=9.
Without insurance, Pete's expected utility is .9*sqrt(2*10000) + .1*sqrt(2*2500) = 134.3502884 utils So, what wealth give him equal amount of utility. Well, work the utility formula backwards. That is (134.3502884^2)/2 = 9025. Take it from here.
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