Consider an economy which is producing two goods computers (C) and shoes (S) using two factors of production capital and labor. To produce one computer, it requires 200 units of capital and 5 units of labor. To produce a pair of shoes, it requires 10 units of capital and 1 units of labor. (Unlike the Cobb-Douglas production used in the text, here we are using fixed proportions (Leontief) production functions to make the math easier. That is, the 2 inputs are used in fixed proportions and cannot be substituted for each other) Required:
a. Calculate the capital/labor ratios used in computers and shoes. Which good is more capital-intensive?
b. Using the information on goods prices and the production function for the two goods calculate the wage and the rental rate of capital.
c. Suppose the price of computer increases to $650 but the price of shoes remains at $40. Verify the Stolper-Samuelson theorem.

Case in point 1.2 suppose you work in the it department of global hotels, a multinational hotel chain. global hotels runs several specialized business support systems, including a guest reservations system that was developed in-house to meet the requirements of a large company with worldwide operations. guests can make one-stop online reservations by visiting global's website, which has links to all major travel industry sites. global hotels just acquired momma's, a regional chain of 20 motels in western canada. momma's uses a vertical reservations package suitable for small- to medium-sized businesses and a generic accounting and finance package. should momma's use global hotels' information systems or continue with its own? in your answer, consider issues such as business profiles, business processes, system interactivity, edi, ecommerce, and the characteristics of both information systems. what additional information would be to you in making a recommendation?

According to this excerpt, a key part of our national security strategy is

Your subscription to investing wisely weekly is about to expire. you plan to subscribe to the magazine for the rest of your life, and you can renew it by paying $85 annually, beginning immediately, or you can get a lifetime subscription for $620, also payable immediately. assuming that you can earn 6.0% on your funds and that the annual renewal rate will remain constant, how many years must you live to make the lifetime subscription the better buy?