An example of innovation rent is: Select one or more: O a. The cost of opening a new factory. O b. The return to an entrepreneur from introducing a new technology. O c. The opportunity cost of production. O d. The cost an entrepreneur must pay to the inventor of a new technology.

An example of innovation rent is: Select one or more: O a. The cost of opening a new factory. O b. The return to an entrepreneur from introducing a new technology. O c. The opportunity cost of production. O d. The cost an entrepreneur must pay to the inventor of a new technology.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 4SCQ: Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the...

See similar textbooks

Related questions

Q: Your uncle is thinking about opening a hardware store. He estimates that it would cost Rs.5,000,000…

A: A. Opportunity cost refers to the value of something that must be given up to get the other goods…

Q: 3. Schmitt's Bakery sells cookies in a perfectly competitive market and hires workers from a…

A: We are going to calculate Marginal Revenue Product and Profit maximizing labor count to answer this…

Q: 1, If the wage rate 'w' is $40 and the cost of capital is $40, calculate the average cost of…

A: In economics, average cost or unit cost is equal to total cost (TC) divided by the number of units…

Q: What you give up to obtain an item is called: Select one: O a. variable cost O b. direct cost OC.…

A: The monetary value that a business has expanded to manufacture something is referred to as cost. The…

Q: The following does not seem to be belonging to the Asian marketplace, other than Japan. O a.…

A: Japan is famously known to home to high-skilled labor.

Q: 11 Q3. y LAK and (p = $10, w = $5,r= $5). Find the optimal labor and capital, (L", K") to maximize…

A: Optimal labor is that quantity of labor that maximizes the production and profit and also minimizes…

Q: 5) Arswer the following questions based on the graph below: a)From point A to B and from B to C, is…

A: [a]From point A to B and from B to C, overall production is risingL rose from 80 to 140 to 280…

Q: Adam Smith believed that specialization is limited by: O a. the size of the market. O b. the number…

A: Free markets refer to the markets where the demand and supply levels of goods and services determine…

Q: A factory supervisor faces the following table: Quantity of laptops Labour cost ($) Rental of…

A: The term "average cost" refers to the production cost per unit, which is determined by dividing the…

Q: In the United States, where Internet services are cheap, the ratio of capital to labor used is…

A: Money is important in day to day life. Money has been developed since the ages and currently it is…

Q: The entrepreneur's sole function is to combine other resources (land, labor, and capital) in the…

A: The resources which are used for the production of a good or a service are called factors of…

Q: Complete the following table: Assuming the price of capital (k) is $4 and the price of labor (L) is…

A: Price of capital(K)= $4 Price of labor(L)= $6 Total cost(TC)= Price of capital * K + Price of labor…

Q: Complete the following table and what production technique should this firm use: Assuming the price…

A: Total Cost (TC) of Technique A Price of capital (Pk) = $5 Price of labor (PL) = $10 Price of…

Q: An example of a fixed cost is O a property tax O the cost of labor O the cost of materials O the…

A: The expenses that are being incurred for carrying out day-to-day business transactions are known as…

Q: If Mr. White decides to open his sporting goods store, what is the opportunity cost of this…

A: If Mr. White opens a sporting goods store in the building then he is using the place for himself…

Q: O The sole gas station in a small town O Avocados at a farmers' market O Lowe's and Home Depot O A…

A: An oligopoly is a market arrangement in which a small number of enterprises can exert significant…

Q: From the table below, if you know that each labor price (Wage) = (5$) and each capital price = (2$):…

A: Production technology signifies the method used by a firm in carrying out its production activity.…

Q: can produce 100 cookies per day, the cost of the average worker is $32 per day, and the price of a…

A: The profit maximizing condition is given as MRP( marginal revenue product) = wage

Q: The earnings of workers O a. depend on the highest degree earned O b. do not depend on the college…

A: Marginal benefit(MB) is the extra benefit received from consuming 1 more unit of a good. It shows…

Q: Using the value marginal product concept, what do you expect if the price of the product sold falls?…

A: Marginal Product The marginal product of an input is the additional output that results from adding…

Q: Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she…

A: Physical capital is one of the three primary factors of production, i.e., land, labor, and capital.…

Q: icroeconomics is the study of how individuals and companies make choices regarding location and…

A: The basic economic activities of life are the production, distribution and disposal of goods and…

Q: if a capitalist uses her/his own money (capital) to start a business, then why can’t she/he have a…

A: There are four factors of production namely land, labor, capital, and entrepreneur that are required…

Q: n 2018, General Motors (GM) announced that it would reduce employment by 14,000 workers. a. What…

A: Theory of factor pricing based on marginal revenue productivity is of particular importance in…

Q: Marginal cost is the one more unit of a good and opportunity cost of producing increases as…

A: Marginal cost refers to additional cost that is incurred by pricing one more unit of a good.

Q: A firm can hire as much labor as it wants at $5 per hour. In return, each worker pro- duces 10 units…

A: a) The cost per labor is $5 and each labor produce 10 units of output that are sold at price = $2.…

Q: Prunella raises peaches where L is the number of units of labor she uses and T is the number of…

A: Profit maximization is interactive business firms go through to guarantee the best yield and value…

Q: Which of the following is CORRECT? Select one: O a. If a firm is technologically efficient, it is…

A: Option ‘A’ is correct answer If a firm is technologically efficient, it is always economically…

Q: et opened a candy store. He rented a building for $30,000 a year. During the first year of…

A: Total Revenue = $135,000Explicit Costs = Rent on building +Salary to employees + Utilities +…

Q: An example of variable cost is. Select one: O a. Wages O b. Budlings C. Rent O d. Machines

A: There are two type of cost which is used in production - 1) Fixed cost 2) Variable cost 1) Fixed…

Q: An example of innovation rent is: Select one or more: U a. The cost of opening a new factory. O b.…

A: Innovation Rent can be defined as the profits that exceed economic profits, received by an innovator…

Q: Ray hires students to mow lawns in the summer. The table sets out Ray's total product schedule.…

A: The marginal product of labor is the addition to the total product when an additional unit of labor…

Q: Which of the following is a macroeconomics question? Select one: O a. Why does a firm decide to…

A: Macroeconomics is the study of the large aggregates of the economy or the economy as a whole whearas…

Q: Complete the following table and what production technique should this firm use: Assuming the price…

A: I am assuming data to be like this Technique Quantities produced Number of labor Units…

Q: Refer to the graph above to answer this question. Which of the following statements is correc?…

A: Rent refers to the amount of money which is paid to the landlord in return of the services availed…

Q: Your uncle is thinking about opening a hardware store. He estimates that it would cost Rs.5,000,000…

A: Opportunity cost refers to the value of something that must be given up in order to get the other…

Q: Choose the correct statement. ... OA. The demand for capital is perfectly inelastic. OB. The supply…

A: Capital is one of the most important factor of production when producing a good as it is used as raw…

Q: If a decrease in the price of capital results in increased demand for capital and a proportional…

A: Complements in production: When two or more goods are produced jointly from the same inputs are…

Q: If Al-quds firm has $ 1000 to be spent on two factors of production, the price of labour PL = $ 100…

A: Answer: Given, Total Cost (C)= $1000 Price of labour (PL) = $100 Price of the machine (PM) = $20…

Q: Which of the following is the best example of a transactions cost? O the price of labor and…

A: Cost is the expenditure of producing goods and services. It is the sum total of the total fixed cost…

Q: Wages are paid to and interest is paid to O A. entrepreneurs; capital O B. labor; capital O C.…

A: Wages are a fixed payment which is paid regularly to the person who works on a daily/weekly basis.…

Q: The wage rate is $25 per hour and the cost of capital is $50 per hour. At the current output, the…

A: MPL/w=MPK/r is the cost minimization condition. MPL is the marginal product of labor w is the age…

Q: In the circular-flow diagram, firms are sellers in Select one: O a. the factors of production market…

A: Option ‘C’ is correct answer c) the goods and services market

Q: Explain why the marginal cost of production must increased if the marginal product of the marginal…

A: The marginal cost of production refers to the change in total cost due to produce an extra unit of…

Q: What are the items that make opportunity cost differ from the accountant's measure of cost? A firm's…

A: A firm's opportunity cost is the cost foregone in terms of the next best alternative to pursue the…

Q: A marginal is one that?

A: A marginal is one that is the result of implication of an additional unit to any process.

Q: Some movie complexes have machines that sell movie tickets. When this occurs, the movie complex is…

A: In economics their are five factors play roll in production. The land, capital, labor,…

Q: 10 of 38 Assume that Alex uses capital and labour to produce a good. The unit price of capital is $2…

A: Total cost: It is the sum total of the cost that is incurred in the process of production, it is a…

Q: Why the answer is 4 hours?

A: From the data, we see that per hour wage rate is $18 and we need to understand the most ideal…

Question

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 by step

Solved in 2 steps

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 Mazoon Company paid for the advertisement of their milk and milk products to Oxygen Advertising Agency. Choose the cost incurred by Mazoon company. O a. Production cost O b. Explicit cost O c. All of these O d. Opportunity cost
What specific data must a firm examine to decide the quantity of product it should produce to make maximum profit? How will the firm know if it should produce at all? How will the firm know if it mak a an economic profit?
How much profit will the firm make as profit in the short run? What is the short break even point? What is the firms long run minimun cost? Why does the long run average cost curve decrease and then increase? Give some reasons that the real-world experenciences this
If a firm produces nothing, which of the following costs will be zero? Select one: a. variable cost O b. fixed cost c. opportunity cost O d. total cost
Using the graph on the right, determine how the firm should change the quantity of the production factors in order to reduce the costs. The firm that is producing at point A can reduce its costs for producing 900 units by employing A. same capital and more labour. B. more capital and more labour. O C. less capital and more labour. D. more capital and less labour. E. less capital and the same labour. OO ỗ Q=1800 Q = 900 Isocost line OU
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
In choosing a production technology, how will firms react if one input becomes relatively more expensive?
How does fixed cost affect marginal cost? Why is this relationship important?
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
Why will profits for films in a perfectly competitive industry tend to vanish in the long run?
Suppose the cost of machines increases to 55, while the cost of labor stays at 40. How would that affect the total cost of the three methods? Which method should the film choose now?
3. After graduation, Mitul went back to his village and started a commercial fishery. The relationship between hours spent fishing and the quantity of fishing caught: Hours Quantity of Fish (in Kgs) 0 hours O Kg 10 1 2 18 24 4 28 a. What is the marginal product of each hour spent fishing? b. Mitul has a fixed cost of $10 (his pole). The opportunity cost of his time is $5 per hour. Graph the fisherman's total-cost curve. [5 marks]