A U. S. electronics firm is considering moving its production abroad. Its production function is​ q= L^0.8K^0.2 (based on​ Hsieh, 1995), so its MPL= 0.8^0.2/ L^0.2 and its MPK=0.2L^0.8/ K^0.8.

In the United​ States, w​= 8$ and r=2. In​ Mexico, the wage is 20​% lower than in the United States but the firm faces the same cost of​ capital: ​w*= $6.40 and ​r*=2. What are L and K and what is the cost of producing q=100 units in both​ countries? In the​ U. S., L isnothing:

Afactory owner wants his workers to produce as many widgets as they can so he pays his workers based on how many widgets they produce. however, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. if a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. how is this factory owner seeking to solve the agency conflict problem in this case?

Which of the following statements is not correct? 1) trade allows for specialization. 2) trade has the potential to benefit all nations. 3) trade allows nations to consume outside of their production possibilities curves. 4) absolute advantage is the driving force of specialization.

Consider derek's budget information: materials to be used totals $64,750; direct labor totals $198,400; factory overhead totals $394,800; work in process inventory january 1, $189,100; and work in progress inventory on december 31, $197,600. what is the budgeted cost of goods manufactured for the year? a. $1,044,650 b. $649,450 c. $657,950 d. $197,600