Identify a correct statement about household production. O Household production is more likely to occur when the opportunity cost of household work is relatively small. O Household production is more likely to occur when it requires many specialized resources. O Household production is more likely to occur when tax avoidance is undesirable. TT da roduction is more likely to occur when less control over the final

Identify a correct statement about household production. O Household production is more likely to occur when the opportunity cost of household work is relatively small. O Household production is more likely to occur when it requires many specialized resources. O Household production is more likely to occur when tax avoidance is undesirable. TT da roduction is more likely to occur when less control over the final

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 42P: A small company that shovels sidewalks and driveways has 100 homes signed up for its services this...

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Assume that a business firm finds that its profit is greatest when it produces $40 worth of product A. Suppose also that each of the three techniques shown in the table below will produce the desired output:a. With the resource prices shown, which technique will the firm choose? Why? Will production using that technique entail profifit or loss? What will be the amount of that profifit or loss? Will the industry expand or contract? When will that expansion or contraction end?b. Assume now that a new technique, technique 4, is developed. It combines 2 units of labor, 2 of land, 6 of capital, and 3 of entrepreneurial ability. In view of the resource prices in the table, will the fifi rm adopt the new technique? Explain your answer.c. Suppose that an increase in the labor supply causes the price of labor to fall to $1.50 per unit, all other resource prices remaining unchanged. Which technique will the producer now choose? Explain.d. “The market system causes the economy to conserve most in…