Principles of Macroeconomics (11th Edition)
11th Edition
ISBN: 9780133023671
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 16, Problem 13P
To determine
Optimal level of inventory.
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Chapter 16 Solutions
Principles of Macroeconomics (11th Edition)
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- In the United States economy, there is a great deal of focus on technological advancements. These advances are said to increase worker productivity (like Zoom) or increase the productivity of capital (such as technology that makes the supply chain more efficient).What effect does advancement in technology have on the equilibrium real rental price and capital, assuming that the supply of capital is fixed? Explain, using the terms in the production function, how you know this to be true.arrow_forwardCirculating capital is best described as: The materials in inventory that go into or are consumed in making the finished product and all the finished goods in inventory. The tools used in making the finished product. When a product is built by moving it from station to station throughout a factory where workers focus on one small job that is only a portion of the whole process of production. Money that moves through different divisions of a business to be used in the production process.arrow_forwardEconomists Conclude that a tax on the revenues of firms will be shifted in part to consumers of the products of those firms in the form of higher prices. However, they believe that a tax on the rent of land usually cannot be shifted and must be paid entirely by the landlord. What explains the difference?arrow_forward
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