Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 26, Problem 1QCMC
To determine
The difference between the Stock and the Bond.
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Consider a firm with the following production function Q=5000L-2L2.a. Find the maximum production level.b. How many units of labour are needed at that point. c. Obtain the function of marginal product of labour (MRL)
d. Graph the production function and the MRL.
Exercise 4A firm has the following total cost function TC=100q-5q2+0.5q3.
Find the average cost function.
A firm has the following demand function P=200 − 2Q and the average costof AC= 100/Q + 3Q −20.a. Find the profit function. b. Estimate the marginal cost function. c. Obtain the production that maximizes the profit. d. Evaluate the average cost and the marginal cost at the maximising production level.
Chapter 26 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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- C. Regression Discontinuity Birth weight is used as a common sign for a newborn's health. In the United States, if a baby has a birthweight below 1500 grams, the newborn is classified as having “very low birth weight". Suppose you want to study the effect of having very low birth weight on the number of hospital visits made before the baby's first birthday. You decide to use Regression Discontinuity to answer this question. The graph below shows the RD model: Number of hospital visits made before baby's first birthday 5 1400 1450 1500 1550 1600 Birthweight (in grams) a. What is the running variable? (5 points) b. What is the cutoff? (5 points) T What is the discontinuity in the graph and how do you interpret it? (10 points)arrow_forwardC. Regression Discontinuity Birth weight is used as a common sign for a newborn's health. In the United States, if a baby has a birthweight below 1500 grams, the newborn is classified as having “very low birth weight". Suppose you want to study the effect of having very low birth weight on the number of hospital visits made before the baby's first birthday. You decide to use Regression Discontinuity to answer this question. The graph below shows the RD model: Number of hospital visits made before baby's first birthday 5 1400 1450 1500 1550 1600 Birthweight (in grams) a. What is the running variable? (5 points) b. What is the cutoff? (5 points) T What is the discontinuity in the graph and how do you interpret it? (10 points)arrow_forwardExperiments Research suggests that if students use laptops in class, it can have some effect on student achievement. While laptop usage can help students take lecture notes faster, some argue that the laptops may be a source of distraction for the students. Suppose you are interested in looking at the effect of using laptops in class on the students' final exam scores out of 100. You decide to conduct a randomized control trial where you randomly assign some students at UIC to use a laptop in class and other to not use a laptop in class. (Assume that the classes are in person and not online) a. Which people are a part of the treatment group and which people are a part of the control group? (10 points) b. What regression will you run? Define the variables where required. (10 points)arrow_forward
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