Sample Final Exam 2

explains it correctly and the not use excel

Alternative ways of making 100 shirts a day are in the table below: Method Labor (hours) Capital (machines) A 10 50 B 20 40 C 50 20 D 100 10   1. Which methods are technologically efficient?

What is the per unit opportunity cost of product X as production moves from point A to point F? A) 2/5 B) -2/5 C) 5/2 D) -7/6

A dressmaker can sew 800 garments with 160 bolts of fabric and 3,000 hours of labor. Another dressmaker can sew 800 garments with 200 bolts of frabic and 2,000 hours of identical labor. Frabric cost $80 a bolt and labor cost $10 an hour. a.) is it possible for both methods to be techically efficient? why or why not? b.) is it possible for both methods to be economically efficient? why or why not?

Labor Capital (machines) (hours) 10 35 B 25 25 C 10 60 D 30 20 Using the data in the above table, if the price of an hour of labor is $20 and the price of a unit of capital is $10, then the most economically efficient technique for producing 100 sweaters is OD. A. Technique A

II. Helping Conchita-Crem to minimize costs Suppose that the labor cost of Conchita-crem is $20 USD per hour, and the cost of capital is $5 USD per hour. Suppose the production function for conchas is q = 10L/2K2 a) José Antonio produces 1000 conchas. He is currently using 100 workers and 100 ovens. Is he optimizing his use of inputs of production? b) What is the rule to optimize the use of inputs of production? c) Find the optimal level of labor and capital for Conchita-Crem. What is its total cost? d) Now suppose that the rental price of ovens for Conchita-Crem increases 100%. Would the production change? What would be now the rule to efficiently use inputs of production? How much labor and capital be used? What is the total cost now? Compare it to your answer in c. e) Find the input demand functions for capital and labor. Remember these functions specify the amount of labor or capital that Conchita-Crem will use as a function of production level q. f) Suppose now that José Antonio…

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part D E F

a. Under autarky (in absence of trade), a unit cost of labor (w) is $40 and a unit cost of capital (r) is $20 in the U.S.   Draw the minimum-total-cost isocost line to produce 100 units of vaccines and label it as "(w/r)us" on the isoquant diagram of vaccines, attached to this instruction sheet. Indicate an optimal point on your diagram and label it as "US". At the optimal point, how many units of labor and capital will be used?

The table below shows the maximum output levels for Here and There. Cloth Computers Here 110 or 60 There 70 or 120 a. What is the cost of 1 unit of cloth and a computer in Here? Round your answers below to 2 decimal places. 1 cloth computers. 1 computer units of cloth. b. What is the cost of 1 unit of cloth and a computer in There? Round your answers below to 2 decimal places. 1 cloth = computers. 1 computer = units of cloth. c. In which product does each country have a comparative advantage? Here: (Click to select) v There: (Click to select) v. d. What is the range of feasible terms of trade between the two countries? Round your answers below to 2 decimal places. Feasible terms of trade computers to between 1 unit of cloth to units of cloth. between 1 computer 8 of 33 Next > < Prev

a.)Suppose that labor is the only variable input in the production process. If the marginal cost of production is diminishing as more units of output are produced, what can you say about the marginal product of labor?b.)What are economies of scale? What are economies of scope? What is the difference between the two?

Need help with 4,5 & 6 4) Determine the cost of 1 gallon of gasoline. Calculate the labor cost equivalent of those 2 people to push a car 40 miles. (You have to make assumptions on how much you would have to pay someone per hour to push a car). How much cheaper is it to use a gallon of gasoline to move a car 40 miles down the road as opposed to paying 2 people to push the car 40 miles down the road. 5) How much energy (in Joules and in food calories) do you estimate it would take two people to push a car 40 miles down the road. (1 food calorie = 4,186 J) The basic metabolic rate for the human body is about 60 (food) calories per hour. A runner running 10 miles at 6 minutes per mile burns about 1000 food calories per hour. Estimate how many calories per hour a person pushing a car at walking speed would burn (remember there are 2 people pushing at the same time) 6) Assuming that the car was traveling at 45 miles per hour (a very efficient speed for a car). How long does it take…

Table 19.15 shows how the average costs of production for semiconductors (the "chips" in computer memories) change as the quantity of semiconductors built at that factory increases. a. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? b. If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? c. Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers. Quantity of Semiconductors 10,000 20,000 30,000 40,000 100,000 Table 19.15 Average Total Cost $8 each $5 each $3 each $2 each $2 each

1.In 1984, British prime minister Margaret Thatcher decided to shut down so called uneconomic coal mines owned by the government. The National Union of Mineworkers protested , asserting that there was enough coal in the mines to continue current levels of production for years .Thatcher implicitly argued that her decision was economically sound because  at any practical output, for "uneconomic" mine. a) MC>AC b) for every input MPP >APP c) MC>MR d) AC >MC 2.Economics can decide a) the appropriate trade off between fairness and efficiency b) Which pricing arrangement are fair and which are unfair . c) whether a pricing decision will impose inefficiency costs on society. d) all of the above. 3.In long run equilibrium , the perfectly competitive firm produce a) where P=MC=AC b) at the lowest point on its long run average cost curve . c) where its long run average cost curve is tangent to its horizontal demand curve. d) all of the above .

Use the following graph to illustrate the relationship between the cost per bag of potato chips and the quantity of potato chips produced if it has a minimum point at two dollars a bag and eight bags.

2. A firm uses capital (K) and labour (L) to produce luxury office chairs. The production technology is given by Q = K ³/4L¹/4, where Q is the number of chairs produced.

When thinking about cost analysis in Microeconomics, what are the real-world problems that occur when applying theories of scale? Describe and give an example of each.

D. Read the problems below. Analyze and solve the problem carefully. 1. The cost in dollars, of producing x golf balls is given by: C(x) = 0.53x + 74 000 The average cost per golf ball is given by C(x) Č(x) = 0.53x + 74 000 1.1 Find the average cost per golf ball of producing а. 1 000 b. 10 000 с. 100 000 1.2. What is the equation of the horizontal asymptote of the graph of C ? Explain the significance of the horizontal asymptote as it relates to this application. 3 2. A clothing merchant uses the function S(x) =x+ 18, to determine the retail price, in Php, of a pair of mittens for which she has paid a wholesale price of x pesos. a. The merchant paid a wholesale price of Php 96 for a pair of mittens. Use S(x) to determine the retail price she will charge for this pair of mittens. b. Find S-1 and use it to determine the merchant's wholesale price for a mitten that retails at Php 210. 3. The function defined by v(x) = 3.8x converts a volume of x gallons into v(x) liters. a. Find the…

Vincent Pearson makes dining tables, and he is trying to decide how many tables to produce. He can sell each dining table for $3,000. The cost of the first table is $1,000, for the second it's $1,500. For each additional table he produces, the marginal cost of each table increases by $500. How many dining tables should Vincent produce, and what is the total cost of his production? He will produce five tables at a cost of $10,000. He will produce four tables at a cost of $12,000. He will produce six tables at a cost of $13,500. He will produce seven tables at a cost of $17,500.

Suppose the fixed cost of building a nuclear power plant is $1 billion. Suppose also that the only variable cost is the labor of Homer Simpson, and he earns $10 per hour. If the plant generates 1,000 kilowatts each hour, and has already generated 1 billion kilowatts, what can you say about the marginal cost of the next kilowatt? (A) The marginal cost is equal to $0.01. (B) The marginal cost is equal to $1.01. D The marginal cost is falling. The marginal cost is rising.

relationship between marginal and average costs Consider the following scenario to understand the relationship between marginal and average values. Suppose Raphael is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Raphael's free-throw percentage for each game and his overall free-throw average after each game. Game Game Result Total Game Free-Throw Percentage 1 4/5 4/5 80 2 2/5 6/10 3 1/4 7/14 4 1/2 8/16 5 4/4 12/20 Average Free-Throw Percentage 80 On the following graph, use the orange points (square symbol) to plot Raphael's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot his overall average free-throw percentage after each game. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. FREE-THROW PERCENTAGE 100 90 80 70 60 50 40 30 20 10 0 0 1 2 3 5 GAME Game Free-Throw…

22. Suppose an artist put on 5 concerts in Korea last month for an average total cost of $1 million each. It considered doing 6 concerts for an average total cost of $0.9 million but decided not to. What would have been the marginal cost of the 6th concert? $_ million

The marginal cost of producing the xth box of lightbulbs is 4+x^2/1,000 dollars per box. Determine how much is added to the total cost by a change in production from x=30 to x=90 boxes. 

In recent years, the United States has experienced large increases in oil production due in large part to a new technology, hydraulic fracturing ("fracking"). Fracking involves injecting a mixture of water, sand, and chemicals into rock formations at high pressure to release oil and natural gas. An article in the Wall Street Journal indicates that economies of scale in fracking may be considerably smaller than in conventional oil drilling. If this view is cor- rect, what would the likely consequences be for the num- ber of firms drilling for oil in the United States?