A kid wants to open a lemonade stand in their neighborhood. They would have elastic supply because O Lemonade takes a long time to produce O They can only produce one product O The product has to be sold from their house O They have flexible inputs
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- What happens to the supply curve when the there is advancement in technologycalculate the profit at the production level.Since most consumers spend very little on salt, a small increase in the price of salt will:A. reduce quantity demanded by a large amountB. not reduce quantity demanded by very muchC. not change quantity demandedD. increase quantity demanded by a small amount 2.Fred is considering opening a ski shop in Colorado. Assume Fred will incur the following costs: building rent= $100000/year, inventory= $250000/ year, energy=$50000/year, and labor (one clerk) = $10000/year. In addition, Fred’s current income as a computer programmer is $40000 per year. Assuming Fred would earn $ 460000 in revenues, he could expect to earn:A. an accounting profit of $10000 per yearB. an accounting profit of $ 60000 per yearC. an economic profit of $ 10000 per yearD. an economic profit of $50000 per year 3.Suppose a firm employs only capital and labour (K and L) and its production function is Q = 2KL. If the quantities of labour and capital are fixed at K =10 and L = 25, then:A. total output cannot exceed 125B.…
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- microeconomics 1)given U(x,y) if owprice elasticity is -6/5 and cross price elasticity to x is 1/5 find income elasticity 2) given a production fuction Q=2(L)^1/2 price of labors and goods are w and p find quantity produced that maximize profits Please answer both sir I have no more questions left sirIt has been mentioned that there should be a match of supply and demand in a company that produces spare parts.Department A can produce parts at a rate of 80/day.Department B uses those parts at the rate of 10/day.Each day unused parts are added to inventory.At what rate does inventory of unused parts buid up?What do you suppose the effect of a tax would be on the number ofapartments that would be built in the long run?
- Recently Bangladesh saw an increase in oil prices. How do you think this will affect theaggregate supply curve in the short run? The drawing diagram shows how do you think theeconomy will be impacted in the short run. Compare your results to a negative demandshock.Smiling Cow Dairy can sell all the milk it wants for$4 a gallon, and it can rent all the robots it wants tomilk the cows at a capital rental price of $100 a day.It faces the following production schedule:Number of Robots Total Product0 0 gallons1 502 853 1154 1405 1506 155a. In what kind of market structure does the firm sellits output? How can you tell?b. In what kind of market structure does the firmrent robots? How can you tell?c. Calculate the marginal product and the value ofthe marginal product of each additional robot.d. How many robots should the firm rent? Explain.(a) Disinguish beween Direct and Indirect production (b) Explain any five (5) reasons why different firms produce different levels of outputshigher costs
