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 WPS Office ? Second_Midter

Economics

 WPS Office ? Second_Midter...021_Code2.pdf QX + Sign in Go Premium ? ? Menu Home Insert Comment Edit Page Protect Tools ?? 0 + : C Hand Tool 162.52% 1/1 ??,? Select Tool Edit Content PDF to Office PDF to Picture Annotate 1:10 Rotate Auto Scroll Read Mode Background Screen Grab Search Highlight Note Boa Question 1: A project requires an initial investment of $10000. It produces a return of $9000 at the end of year 1 and $2000 at the end of year 2. Find the value of the internal rate of return. Question 2: The demand function is given by P = 89 - Q? and the supply function is P = (Qs + 3)2. Calculate the consumer's surplus and producer's surplus under pure competition. Question 3: A firm's unit capital and labour costs are $4 and $1, respectively. If the production function is given by Q 10K1/2L1/2 and total input costs are $168, use the method of Lagrange multipliers to find the levels of K and L which maximise output. Verify that the ratio of marginal products to price is the same for both inputs at the optimum. Question 4: Consider the following macroeconomic model: Y = C + I* + G* + X* – M* (equilibrium of national income) I Navigation K. 1/1 > > Ó BE 1:1 'n N163% - + + ! PL DEN » V ENG 3:28 PM 10/12/2021

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