A feasible production combination for a firm producing two outputs must be: (i) Outside the PPF (ii) Inside the PPF (iii) Either (i) or (ii) (iv) On the PPF at the point of tangency with iso-revenue line.

A feasible production combination for a firm producing two outputs must be: (i) Outside the PPF (ii) Inside the PPF (iii) Either (i) or (ii) (iv) On the PPF at the point of tangency with iso-revenue line.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter22: Economies In Transition

Section: Chapter Questions

Problem 14SQ

See similar textbooks

Related questions

Q: What are economic costs? Group of answer choices Any contractual obligation that results in a flow…

A: The economic cost is the mix of misfortunes of any merchandise that has a worth joined to them by…

Q: Two alternative programs to save 50 more lives per year entail providing more cardiac intensive care…

A: A cost-benefit analysis compares an intervention's costs and benefits, which are both expressed in…

Q: What is production efficiency and product mix efficiency? What is the main condition for each type…

A: Production efficiency is a financial/economic term portraying a level in which an economy or element…

Q: Demonstrate the following two scenarios with clearly and fully labeled graphs: The change in the…

A: Isoquant lines represents the combination of different inputs that gives the same level of output.…

Q: Describe “near-efficiency” theory that was proposed by Grossman and Stiglitz.

A: The Grossman-Stiglitz Paradox is a paradox proposed by Sanford J. Grossman and Joseph Stiglitz in a…

Q: Suppose that widgets can be produced using two different production techniques . A and B. The…

Q: What is the relationship between economies of scale and intra-industry trade? Group of answer…

A: In a market, intra-industry trade refers to the exchange of similar products belonging to the same…

Q: Discuss the impact of cost trade-off of the following: (a) Longer production runs…

A: Part (a) Longer production runs producing syringes will lead to lower unit cost i.e., the decrease…

Q: Q6. - a term referring to the fact that for many goods, as the level of production increases, the…

A: Taking each option one by one Skills: it is the specific or special way to do some work.…

Q: According to the marginal decision rule, if marginal benefit: Group of answer choices A. exceeds…

A: According to the marginal decision rule, the firm will maximize the profit by increasing the output…

Q: The change in the optimal capital-labor ration if both inputs are perfect complements in production…

A: Perfect complements are those products, items, or inputs that are always used together and also are…

Q: Which of the following statements is true? (a) If a firm is experiencing decreasing returns, it…

A: Production Possibility curve refers to graphical representation that shows all the combination of 2…

Q: As may have been blatantly obvious to you all along, since Miranda is the only inhabitant of the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is not one of the central institutional characteristics of a capitalist…

A: A capitalism economy is where government intervention is absent and market forces set the price. It…

Q: Distinguish between economies and diseconomies of scale, ensuring to differentiate between internal…

A: The difference between economies and diseconomies of scale: In both the enterprises: public and…

Q: A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu…

A: The sunk costs are the expenditure incurred by a firm or business that is non-recoverable or on…

Q: Which of the following is likely to be the least important factor for firms in determining…

A: Production is an activity that employs labor, capital, products, and services as inputs to generate…

Q: Budget lines and production possibility curves have a common assumption of increasing opportunity…

A: Answer: False, The production possibility curve has increasing opportunity cost but budget lines are…

Q: The change in the optimal capital-labor ration if both inputs are perfect complements in production…

A: If both inputs are perfect complementary good in productions, it means that both inputs are used in…

Q: What are two areas in which economies of scale benefits are associated with group living? Provide an…

A: Economies of scale are value blessings firms expertise once production becomes economical, as prices…

Q: Demonstrate the following scenario with clearly and fully labeled graphs: The change in the optimal…

A: Complementary Input: The complementary inputs are the factor inputs of production that a firm uses…

Q: Explain three different kinds of economic systems. Explain the Law of Diminishing Returns and…

A: Question 1) An economic system refers to the set of rules and regulation or a mechanism which is…

Q: The extraction of gas and oil products has increased on account of increased demand of gas and oil…

A: Linkages refers to the relation between input and output in the process of the extraction. Linkages…

Q: Which of the following statement is not true? * In mixed economy the factors of production depend on…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The following key concepts under the philosophy of production in Islamic economics are true EXCEPT,…

A: Production is an action to deal with natural substances into completed merchandise. To deal with raw…

Q: Consider a two-sectors (1, 2), two-inputs (L, K), production side of general equilibrium economy,…

A: Production Possibility Curve - This curve tells about a choice of output due to the limited…

Q: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…

A: According to the comparative advantage principle, the person who has a lower opportunity cost in…

Q: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…

A: In this question we have to find out the additional paperwork files to be given up with the help of…

Q: Suppose that wine and cloth are constant returns to scale industries that always use the two inputs…

A: The ppf is Leontief ppf with L shaped isoquants. At the point of kink, the inputs are used in fixed…

Q: To be economically successful, the entrepreneur must combine resources in a manner that increases…

A: The motive of an entrepreneur is to maximize the profit while minimizing the cost of production.…

Q: Suppose the firms needs to produce 18 loaves of bread, and can only choose sites 1 and 2 because…

A: Since there are multiple questions posted, we will answer only the first one.

Q: To be efficient, outputs should be produced that minimize total cost. True or false

A: When the ATC(average total cost) is minimized, then the output level is efficient. ATC is a U-shaped…

Q: Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one…

A: There are two individuals Amy and Bill Two kind of works..1)painting walls, 2) installing…

Q: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…

A: Alec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume…

Q: Problem: Consider a Hecksher-Ohlin model where home and foreign countries produce two goods; food &…

Q: As a manager, and selecting any hypothetical project of your choice, clearly demonstrate how the…

A: maximized. The firm can do in either of the two ways – Method 1: Maximize the output level subject…

Q: Consider the produetion function: f(K,L) = K*L%. Let w and r denote the price of labor and capital.…

A: Production function = K2/3.L1/3 MPk = 2/3K-1/3.L1/3 MPL = 1/3K2/3.L-2/3 MRTS = MPL/MPK At cost…

Q: Which of the following is defined as the value of the resources used compared to the value of the…

A: The value of the resources used compared to the value of the resources created would result in the…

Q: Assume a Heckscher-Ohlin model. Home and Foreign produce food (F) and machinery (M) using labor (L)…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: an labor specialization be a source of economies of scale (size) within a production plant? Why or…

A: Economies of scale is s situation in which long run average cost decreases with increase in output.…

Q: Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to…

A: The Production Possibilities Curve (PPC) is a model that depicts the tradeoffs that occur when…

Q: A feasible production combination for a firm producing two outputs must be Outside the production…

A: A Production Possibility Frontier can be defined as a combination of different bundles of two goods…

Concept explainers

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

Question

A feasible production combination for a firm producing two outputs must be:

(i) Outside the PPF

(ii) Inside the PPF

(iii) Either (i) or (ii)

(iv) On the PPF at the point of tangency with iso-revenue line.

Definition Definition Curve that represents the various combinations of production possibilities of two commodities when resources or factors of production are given.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The Production Possibility Frontier of a country is A has a slope equal to the unit factor cost of good 2. B is the efficient boundary of the set of feasible allocations of goods in a country. C is shaped by the consumers' preferences in a country. D is the set of feasible allocations of goods that can be produced using the technoglogy available in a country.
What does a Production Possibility Frontier for Product X versus Y represent? A) The total combined production of Product X + Product Y for a given set of factors of production B) The trade-off in the level of total production at various output mixes for Product X and Product Y C) The most efficient product production mix for a given set of factors of production D) All of the above
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won& buy it because they done like the taste. From an economic perspective, the company should.......... keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.
To be efficient, outputs should be produced that minimize total cost. True or false
What is the relationship between economies of scale and intra-industry trade? Group of answer choices Intra-industry trade brings competition and diverse products to markets where economies of scale would otherwise promote fewer firms and fewer product options Intra-industry trade reduces competition and product variety in markets where economies of scale would otherwise promote competition and diverse products. As average total cost increases, intra-industry trade increases As average total cost decreases, intra-industry trade decreases.
Discuss the impact of the following factors on the optimal method of procuring input Benefits from specialization Bureaucracy cost Opportunism on either side Specialized investments Unspecified events Barging cost
Matt and Lin are two producers and consumers for lamps and beds. Each of them works 40 hours in a week. Hours required for Matt to produce one unit of lamps or beds are 1 hours or 10 hours, respectively. Hours required for Lin to produce one unit of lamps or beds are 2 hours or 8 hours, respectively. Assuming their PPFs are straight lines. Calculate the correct options that complete the following statements on Matt's PPF. A) If Matt produces only lamps, they can produce ? unit(s) of lamps. If Matt produces only beds, they can produce ? unit(s) of beds B) Calculate the correct options that complete the following statements on Lin's PPF. If Lin produces only lamps, they can produce unit(s) of lamps. If Lin produces only beds, they can produce unit(s) of beds. C) What is the marginal opportunity cost of producing an extra unit of lamps for Matt? An extra unit of lamps costs unit(s) of beds. D) What is the marginal opportunity cost of producing an extra unit of lamps for Lin?…
Absolute advantage represents the Question 36 options: opportunity costs of the government. payments to land, labor, and capital. input requirements per unit of output. locational and logistical circumstances.
In the specific factor model in a market equilibrium the mobile factor's productivity must be the same for the production of all goods. True False
A firm produces two different kinds A and B of a commodity.The daily cost of producing x units of A and y units of B is C(x,y)=20(x^2+xy+y^2).Suppose that the firm sells all at a price per unit of 240 for A and 180 for B. 1)find the daily production level that maximizes profit and confirm its maximum. 2)Suppose the firm is required to produce exactly 5 units in all.what are now the optimal production level of x and y.
Demonstrate the following two scenarios with clearly and fully labeled graphs:The change in the optimal capital-labor ration if both inputs are perfect complements in production and both their prices increase by an identical percentage. Assume the total cost before and after the change in input prices remains the same.
In a Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then Both owners of K and owners of A will benefit. Owners of A will benefit. Owners of K will benefit. Neither owners of K nor owners of A will benefit. Include diagram*** and explanation attached is graph for reference