Answer the following questions. (a) Can production satisfy both constant returns to scale and diminishing (marginal) returns to capital? (b) Observing a downward trend in the prices of capital goods, some companies decide to decrease or postpone their purchases of such goods. All else equal, will the real interest rate increase or decrease?

Q: Josel owns two fields: Green . Joint PPF and quantity restriction field and Blue field. He can…

A: The maximum combination of outputs that numerous agents or resources can produce while taking into…

Q: A firm faces the following costs: total cost of capital = $4,000; price paid for labor = $20 per…

A: Given :Total fixed cost = $4000Price paid for labour= $20 per unit price paid for raw materials=…

Q: You work for a consulting firm and have been asked to review this case: A firm increases its plant…

A: The objective of the question is to provide advice to a firm that has increased its plant size and…

Q: Long question: Backstop technologies. The US follows the Hotelling rule in their decision to extract…

A: The Hotelling model posits that with dwindling non-renewable resources, prices trend upwards,…

Q: Suppose the government passed a tax reform giving an investment tax credit to any firmbuilding a new…

A: Explained below in detailExplanation:Detailed explanation:To demonstrate the impact of the…

Q: Define and explain the internal rate of return on a new investment?

A: Internal rate of return or IRR is a measure in economics of  capital budgeting parlance and…

Q: You work for a consulting firm and have been asked to review this case: A firm increases its plant…

A: The objective of the question is to provide advice to a firm that has increased its plant size and…

Q: Investors typically use which of these ratios in their analysis of a company's earnings potential?…

A: The answers are: Price ratios Return ratios

Q: firm learns of an investment opportunity that will increase future revenue, two years from now, by…

A: To determine whether the firm should make this investment, we need to calculate the net present…

Q: If firms produce goods but does not sell them to final consumers these increases in inventory…

A: Inventory accumulation is a situation in which the costs of the business increases due to unforeseen…

Q: b. Assume that the U.S. produces two goods, chemicals and grain, using two factors, labor and land.…

A: Given information: Country US is producing 2 goods: Chemicals and grain. There are 2 factors of…

Q: Assume the information below to answer the following questions about the land of POGO. Assume a 2%…

A: Gross Domestic Product or GDP can be defined as the value of all the goods and services produced in…

Q: This question is about private consumption. Consider a household that lives for two periods. In…

A: Private consumption refers to the spending by individuals and households on goods and services for…

Q: Consider an individual who will invest a total of $15,000 in direct and indirect costs for training…

A:

Q: Which of the following statements is correct regarding weak sustainability? A. Weak sustainability…

A: Weak sustainability can be defined as the maintenance of the value of the aggregate stock of capital…

Q: 8 . 15 .... .... ..... a. Fill in all the blanks in the table above b. Verify that MRPL for this…

A: According to MPTD (Marginal Productivity Theory of Distribution) factors of production such as…

Q: The production function in the economy is given as Y = F(K,N) and has constant %3D returns to scale.…

A: Solution: a)  Return to scale: It refers to the relationship between inputs and outputs. When total…

Q: if Age dependency ratio (% of working-age population) increas what will happen to fixed capital…

A: In basic or simple terms we can say that the Fixed capital consumption is known to be as the…

Q: Which of the following factors would decrease in the quantity of investment demanded? Multiple…

A: Investment demand means the demand by an entity for physical capital goods and services used for the…

Q: Lamya has initial investment of SR45, 000. If it were to be invested on stocks, the market interest…

A: "Since you have asked multiple questions,we will solve first question for you.If you want specific…

Q: Consider the following production function Y = F(K, N) = √ KN. a. Graphically discuss the long-run…

A: Consider the following production function a. Graphically discuss the long run effect of an increase…

Q: Determine whether the following statements are true or false:- a) If investors are optimistic about…

A: Economics as a subject is used to study the allocation of scarce resources among humans with…

Q: Suppose that with all exogenous variables, including G and M at their original values, business…

A: Short-run frameworkPrices are constantOutput is demand-determinedExchange rate is…

Q: ADVANCED ANALYSIS A firm faces the following costs: total cost of capital = $1,000; price paid for…

A: The firms in the industry are liable to estimate their costs and the benefits for production…