Microeconomy Homework

Martinez Company’s relevant range of Production is 7,500 to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:

Sales for the Executive Shirt Company are constituted of only a few basic styles and colours. Hence the company has a limited number of varieties to produce. So, it has large batches of each kind of shirt (size and color).

The first thing you need to do is save a copy of this document, either onto your computer or a USB drive

Problem #1: Using either a graph or table (Refer to page 22 for help with graphs and tables) use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced?

15. In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is ( )

Explain how a profit maximizing firm determines its optimal level of output, using marginal revenue and marginal cost as criteria:

On a production possibilities curve, the opportunity cost of good X, in terms of good Y, is represented by the:

16) Education leads to external benefits because A) better educated people are less lazy. B)

The table below presents data on the productivity of workers in a meat processing factory. The meat processing industry can be assumed to be competitive. Number of workers Quantity of meat processed per day (kg)

Make a table giving total and marginal cost of production that a blue jeans maker might face for producing blue jeans. Use this table to show why the law of supply holds true in the market for blue jeans.

production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost

12) Suppose that we force the production of one unit of product A. The new objective function value will be

Microeconomics is the economic influences that impact at the micro, or firm, rather than macro level. The study of this subject is one that is highly valuable for any studying business with the provision of knowledge that will increase understanding of different influences and support the decision making processes. With the knowledge gained, along with the skills in applying that knowledge developed through class work and exercises for the different modules, there has also been the development of increased confidence, both personal and in the theories, in using the relevant concepts and tools in a practical setting.

d) The opportunity cost should be calculated as the resource cost of producing the input.

Using the same amount of resources to produce two goods. Draw PPF curve and explain the reason of each question.