This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: perfectly competitive firm. a. Assu ming that the price of the firm’s output sells for $2, fill in the missing data in the table above. b. If the market rate is $40, how many workers will the firm hire? 4. Risk Which of the following gambles would a risk averter take? 0.1% chance to win $1,000,000 99.9% chance to lose $1 0.01% chance to win $1,000,000 99.99% chance to lose $1 10% chance to win $100 20% chance to win $10 40% chance to break even 30% chance to lose $20 5. Money and the Interest Rate Labor Input Output Marginal Product Value of Marginal Product 1 50 2 90 3 120 4 140 5 150 6 150 Suppose that: C = 600 + 0.75(YT)  400r I = 300  500r G = 100 = T  100 NX = 50 a. Find GDP (Y) in terms of r. b. If the Fed drops interest rates by 3%, what happens to GDP?...
View
Full
Document
This homework help was uploaded on 04/13/2008 for the course ECON 190 taught by Professor Belasen during the Spring '08 term at Saint Louis.
 Spring '08
 Belasen
 Monopoly

Click to edit the document details