Answer:
MPLF/MPLC; becomes steeper
Explanation:
The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to MPLF/MPLC and it becomes steeper as more cloth is produced.
Where
- MPLC is Marginal Product of Labor for Cloth.
- MPLF is Marginal Product of Labor for Food.
Answer:
7.53%
Explanation:
Calculation for the discount rate of d(0,4)d(0,4)
The discount factor is : d=1/1+i
And given that the interest rates are compounded annually the discount factor will gives the present value of the bond when provided with the interest rate and maturity value.
Therefore the present value of a bond with a maturity value of 1 will be;
Present value=1 /(1+i1) (1+i) (1+i3) (1+i4)
Present value=1 / (1.07) (1.073) (1.077) (1.081)
Present value=0.748
The present value of a bond with a maturity value of 1 will therefore be 0.748.
Now, let calculate the discounting factor for the whole 4 years:
1 (1+d (0,4))‐⁴ =0.748
(1+d(0,4))=0.748‐¹/⁴
1+d (0,4) =1.0753
d (0,4)=0.0753
Therefore the discount rate will be 7.53%
Answer:
a, 22276.07
b. $32.9157 million
c.$29.9669million
Explanation:
Find the values of k and a assuming a relationship of the form Assume that f(y)=ky^a is in units of barrels per day.
b. Determine the optimal timing of plant additions and the optimal size and cost of each plant addition.a=0.8073, rx=0.41
optimal timing x=rx/r=2.05yrs
optimal size xD=2.05(1.5)
3.075million barrels/year
$32.9157 million
c. Suppose that the largest single refinery that can be built with current technology is 7,500 barrels per day. Determine the optimal timing of plant additions and the optimal size and cost of each plant in this case
Optimal size xD=min
Optimal timing will be X^*=x*D/D=2.7375/1.5=1.825 year
optimal cost f(y)=ky^a=0.0223(7500)^0.8073=$29,9669 milion
I would say the answer is that the natural rate of employment is c. when the amount of labour supplied is equal to the amount of labour demanded. In other words the supply and demand for employment are in equilibrium and there is no excess on either side.
The herfindahl-hirschman index is calculated by summing the square of each company's market share.
In this case, the two firms separately would account for 628 of the herfindahl-hirschman index (12*12+22*22)
If the firms merge, they would account for 1,156 of the herfindahl-hirschman index (34*34)
This is an increase of 528 meaning the market is more concentrated.