The different input combinations of X1 and X2 that produce the same amount of product Y are given below: Combination Inputs X1 X2 A 825 1,350 B 900 1,130 C 975 935 D 1,050 770 E 1,125 620 F 1,200 525 a. Compute for the MRTS. b. Assuming that X1 and X2 are worth Php13.00 per unit and Php5.00 per unit, respectively, find for the least-cost input combination. Use the marginal approach. If the price of X2 becomes half that of X1, what is the new least-cost combination? Use the marginal approach. C.
Q: Lesson 7- Production Question 10
A: a. decreasing Marginal Returns to laborExplanation:Given:Production function: q = 10L0.5K0.6K = 10…
Q: Consider the following production function: q=100L0.80.4 Currently the wage rate (w) is $20.00 and…
A: The production function is the mathematical relationship between different bundles of inputs and the…
Q: THE INFORMATION BELOW PROVIDES PRICE AND MARGINAL UTILITY DATA FOR EACH Of THE PRODUCTS SHOWN UNIT…
A: The marginal utility is described as the added utility satisfaction a consumer receives from having…
Q: Complete the following table, given the information presented on the graph. Result Equilibrium…
A: Public economics investigates government engagement in economic concerns, particularly taxation.…
Q: Suppose that the demand curve for visits to Grand Teton National Park is given by p= 4000 - x, where…
A: Implicit valuation holds significance in microeconomics by providing insights into the societal…
Q: Consider a firm that produces cars with the following production function: q = min(aK, bL) a. Find…
A: In economics, a production function is a means of examining the relationship between input and…
Q: Which of the following is not a dilemma of social capital? A. Some groups can promote values that do…
A: The objective of the question is to identify which of the given options does not represent a dilemma…
Q: Assume that the expected inflation rises to Еπ₂. Consequently, the expected return on one-year…
A: The objective of the question is to calculate the new expected equilibrium quantity and price of…
Q: If the current interest rate increases, what will happen to the interest rate and price of…
A: A branch of economics known as financial economics studies how money is allocated and decisions are…
Q: Review Question 1.2, If a 13 percent increase in the price of Cap'n Crunch cereal causes a 22…
A: Demand(DD) refers to the quantity(Q) of a service or item that consumers are willing and capable of…
Q: A firm is choosing between machines that perform the same task in the same time. Assume the minimum…
A: The present worth of a project or investment refers to its value at present based on the associated…
Q: Question To Be Answered* (c) Use the information on both firms to assess whether the higher…
A: Costs refer to the expenses that are incurred in the process of production of goods or services.…
Q: The table below shows the weekly supply for hamburgers in a market where there are just three…
A: Market supply pertains to the overall amount of a product or service producers are ready and capable…
Q: ge anson Business in a neighboring sta ality. Has Hilga realized income? If so, when 7 How much…
A: Tax is the mandatory payment that is paid by every individual in the country, There are various…
Q: 7. Agreement and disagreement among economists Suppose that Paolo, an economist from a research…
A: It is stated that the economy's budget deficit has been increasing considerably over the last…
Q: Lesson 8 - Costs Question 7
A: The correct answer is:d. Both terms are incorrectly defined.Explanation:Definition I is incorrect…
Q: 05- Income and Substitution Effects Question 5
A: b. Giffen GoodExplanation:Approach to solving the question and detailed explanation:A Giffen good is…
Q: Consider an economy where the natural rate of unemployment rate is 5% and real GDP at full…
A: The economic transfers between large nations is known as exports. A country's products or services…
Q: (Figure: Demand, Revenue, and Cost Curves for Thneeds) Use Figure: Demand, Revenue, and Cost Curves…
A: A monopolist is a business entity whose key objective is to maximize its profits. It is the only…
Q: Starting with the algebraic and graphical results of Problems 5 and 6, determine algebraically and…
A: Aggregate demand (AD): It mathematically represents the total amount of demand for all finished…
Q: 1. According to the Penn World Tables, Real gross domestic product (GDP) per capita (2005 PPP…
A: The compound average growth rate (CAGR) is a measure used to determine the mean annual growth rate…
Q: An airline has exclusive landing rights at the local airport. The airline flies one flight per day…
A: The demand function is the mathematical relationship between the quantity of a commodity demanded…
Q: Reduce the profit from alfalfa in Table 8-2 to $36 per acre, calculate the new output profit ratio,…
A: Profit is the sum of money that the producer or seller of a good earns over and above the cost of…
Q: Suppose a world with two persons and two goods. Is the following statement True, False, Both (True…
A: The objective of the question is to determine whether each person in a two-person, two-goods world…
Q: Use the information in the following table to calculate the marginal utility from consuming the…
A: Marginal utility is the extra fulfillment or utility that an individual gets from consuming one…
Q: (2.3) You are part of a sustainability consulting team tasked with evaluating the feasibility of…
A: The Conventional Benefit-Cost Ratio (B-C ratio), also known as the Classic B-C ratio or the…
Q: QUESTION 4 Consider the decision tree below. This tree illustrates hypothetical payoffs to General…
A: The game theory explains the strategic interactions between different players in the game. Game…
Q: 6) Keizen and Tyke live in a small community in Cabarete in the Dominican Republic. For simplicity,…
A: Private Goods: These goods are exclusively consumed by a person when he/she pays for them.…
Q: A policy-maker minimises a loss function of the form: V = [u-(un-k)]²+ a(nn)² subject to current…
A: In macroeconomics, rational expectations theory suggests that people anticipate future economic…
Q: Demand for a product Z at a price of $p per item is given by and supply is given by [Select] (a)…
A: Product Z at a price of $p per item is given by :Demand: D (p) = 250 - 0.1p^2 - pand Supply: S(P) =…
Q: National Income Accounts (dollar figures are in billions) Expenditures for consumer goods and…
A: Since the early 1900s, the measurement of national income has gained global importance, coinciding…
Q: You can think of the result in any one game as being Parker's marginal shooting percentage. Based on…
A: Marginal cost refers to the additional cost incurred when one extra unit of a good or service is…
Q: 2) Following is distribution data of operational holdings from agriculture census 1976-77: Holding…
A: Lorenz Curve: A graph depicting income or wealth distribution. It shows the cumulative percentage of…
Q: Lesson 7- Production Question 7
A: a. IsoquantExplanation:Approach to solving the question and detailed explanation:An isoquant is a…
Q: Table 1: Q Given 76 248 492 784 1,100 1,416 1,708 1.952 L Given 1 N34567 2 8 K Given N N N N N N N 2…
A: Average Product of Labor (APL) represents the average level of output produced per unit of labor…
Q: Informal volunteering is described as consistent engagement with a nonprofit to support their…
A: The objective of the question is to understand the definition of informal volunteering and whether…
Q: Lesson 6- Individual and Market Demand Question 5
A: c. i; MExplanation:Approach to solving the question and detailed explanation:Variable names for…
Q: just a,b and c please! thank you
A: Check explanation. Step by Step explanation is provided.Explanation:
Q: Answer the question on the basis of the following information. Marginal Product Number of Workers 0…
A: The total output produced with a given amount of input over a period. It is also known as the total…
Q: a) b) c) d) Table 2 Gross Private Domestic Investment Exports of the U.S. $223. $208. $346.…
A: Since the early 1900s, the assessment of national income gained significance globally, aligning with…
Q: A monopolist maximizes profits by choosing its production level to satisfy P = MC. Question 9Select…
A: The objective of the question is to determine whether the statement 'A monopolist maximizes profits…
Q: 05- Income and Substitution Effects Question 2
A: The substitution effect would be 20 units of X. Explanation:Slutsky Substitution effect:The…
Q: If all consumers are price takers and face the same prices, then all consumers have the same choice…
A: Consumer are price takers meaning that consumers compelled to accept market prices through their…
Q: Isabella grows pumpkins. Her average variable cost (AVC), average total cost (ATC), and marginal…
A: A perfectly competitive market consists of several sellers and buyers. It does not have any legal…
Q: The price of butter rises, causing the demand for another good to fall.this implies that the good…
A: The objective of the question is to understand the relationship between the price of one good and…
Q: Suppose we have two markets, A and B, each consisting of seven firms. The market shares of the 5…
A: The concentration ratio in a market may change subject to various factors which determine market…
Q: Required information A company that manufactures magnetic flow meters expects to undertake a project…
A: The annual worth ascertains the annual cash flow throughout the investment period which is…
Q: Table: Production Possibilities for the United States and Mexico Corn (millions of Potatoes…
A: International trade theories play an important role in studying international economics because they…
Q: 05- Income and Substitution Effects Question 7
A: Option e is correct.Explanation:Giffen goods are rare types of goods whose demand rises with the…
Q: 9:28 ← I B GBPUSD Great Britan Pound / US Dollar -5 -1 SL Instant Execution SELL ||| -1 -0.1 1.00…
A: The question is asking to understand the trading scenario of British Pound to US Dollar (GBPUSD)…
Step by step
Solved in 5 steps with 3 images
- The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar operates two plants, one in Detroit, MI and one in Greenville, SC. The production functions for the two Enpar plants are:Detroit: QD= 18SD – 0.25 SD2 Greenville: QG= 43SG – 0.5 SG2 where QD and QG are the outputs of engine parts (in units) from the Detroit and Greenville plants, respectively. SD and SG are the amounts of steel for the two plants. The firm has 104 units of steel available.How much steel should be sent to Detroit?Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.Given the cost function isTC = 6L + 3KFind out the optimal quantities of the two factor using Lagrangian method, if it is given that output is equal to 13.46 = L3/4 . K1/4.A companies has invested $ 1 million in the purchase of new machinery in its plant and does not intend to incur major capital expenditure over the next two years. The companies can manufacture a product according to the annual production function: \ (Q (L) = 30L-L ^ 2 \) , while the annual labor costs (in $ 000's) of are given by the function \ (C (L (L ) = 4L ^ 2 + 20L \) . The companies sells the product at $ 10,000 per unit. a) Determine the optimal level of production and labor in order to maximize profits. b) Find annual profits. c) Calculate the present value of the net profit achieved during 2 years of production assuming an interest rate of 5%.
- Find the Total Cost function as a function of q, c, d. A. w and r; and graph it in relationship to q in excel The idea is to solve the following input minimization problem ina general manner: minTC(K, L ) = wL+ rKs. t. q = AK^CL^d Make sure to set - up your spreadsheet by identifying the optimization problem, the endogenous variables, the exogenous variables and the constraint. Make sure also to show a cell that computes TRS and another that computes -w/r.The cost, in millions of dollars, of building a three-story high school in NewYork State was estimated to be: 2C x x x x 1.7 0.14 0.0001 20 400where x is the number of thousands of square feet. Suppose that you arecontemplating building a for-profit three-story high school and estimate thatyour total revenue will be $0.2 million dollars per thousand square feet.(a) What is minimum area for a three-story high school in New YorkState, that this model covers? (b) What is the variable cost of building a three-story high school in NewYork State? (c) What is the fixed cost of building a three-story high school in NewYork State? (d) Determine the profit function,P x( ), for building a three-story highschool in New York State? . (e) Determine,P(250) , for building a three-story high school in New YorkState, and interpret the result. (f) How many thousands of square feet should a three-story high schoolbuilding in New York State be in order to break even?The production function is f (L, M ) = 5L1/2M 1/2, where L is the number of units of labor and M is the number of machines. If the amounts of both factors can be varied and if the cost of labor is $9 per unit and the cost of using machines is $64 per machine, then what is the total cost of producing 12 units of output?
- Assume an electricity generator can produce electricity from two different production technologies, a dirty technology and a clean technology. The quantity of electricity produced from the dirty technology is Qd in megawatt hours (MWh) and the amount from the clean technology is Qc. The dirty technology produces carbon emissions at a constant rate of d tons per MWh of electricity generation. The clean technology produces carbon emissions at a constant rate of c tons per MWh, where Bc < Bd. The cost functions for the two generation technologies are C(Qd) and C(Qc). The market price of electricity is P. Under these assumptions, the firm’s profit function is: Profit = PQd + PQc - C(Qd) - C(Qc). 1.) Take the partial derivative of profit with respect to each output (Qd and Qc) and set each equal to zero to find the profit maximizing (“first-order”) conditions for each type of electricity. Denote marginal costs of each type of electricity as MCd and MCc. Write down and interpret…The Calcio Coal Company produces coal at four mines and ships it to four power plants (P1-P4). The cost per ton of producing coal and the production capacity (in tons) for each mine are known. The number of tons of coal demanded by each customer is also known. The cost (in dollars) of shipping a ton of coal from a mine to each plant is available as well. The following table provides the data: Mine P1 P2 P3 P4 Capacity Cost 1 9 15 8 10 125 50 2 7 15 14 12 100 57 3 5 5 11 12 150 55 4 3 6 8 11 120 61 Demand 110 115 135 130 Problem 1: Transporting Coal Using the strategy that minimizes cost, how many tons of coal are shipped from Mine 4 to P1?Suppose you sell items on a web site like Etsy and making them requires you to rent some equipment costing $1000 per year as a fixed cost. The materials for making these items cost $30 per item as a variable cost, and you sell them for a price of $50 each. What number of items D' must you make and sell each year for you to breakeven on the cost of this activity? You may be able to raise your sales price and then sell fewer items to maximize profit. Since other people make and sell similar items, a higher price lowers the demand for your product according to the price function p = $120 - 1.5 D. What is the profit maximizing number of items D* that you would need to make and sell to maximize profit? What is the profit earned for the annual number of items made and sold in part b?
- 1. The Primary Metals production function in Table 7.4 of the MMH textbook, holding nonproduction workers constant, can be roughly expressed as Q = 100*L.08*K.37. Use this function to answer the following. Suppose a firm wishes to produce 1200 units of Q. Use an Excel Spreadsheet to find the MRTSLK in adding a 10th unit of Labor. Conduct your analysis using an Excel Spreadsheet and changing Labor by 1, 2, 3, etc., that is, use integer values of L only. In absolute value terms, the MRTSLK when we add the 10th unit of L is ______. A. 114.9. B. 18.4. C. 11.6. D. 7.5. E. 3.6. 2. This is a continuation of the previous problem. Suppose a Primary Metals company’s ratio of PL to PK is 1.40. What is the optimal (cost minimizing) combination of L and K that should be employed by the firm to produce Q = 1200? Conduct your analysis using an Excel Spreadsheet and changing Labor by 1, 2, 3, etc., that is, use integer values of L only. Use a Spreadsheet and not Excel Solver. The optimal L = _____…What can you say about negative and positive gross margin in sensitivity analysisPlease indicate which multiple choice awnser is correct for question 1.1)1.2)1.3)Please indicate it correctly as I have had this awnsered with different letters to the awnser I was told 1.1 - A firm trebles its inputs and discovers that its output rises by a factor of four. This is an example of;Select one or more:a. constant returns to scaleb. diminishing returns to a variable factor c. increasing returns to scaled. economies of scale1.2 - Diseconomies of scale are present when.... Select one or more:a. marginalcostsriseb. long run average costs rise as output rises c. totalcostsfallasoutputrisesd. total costs rise as output rises 1.3 - If the demand for a firm’s product is price inelastic, this implies that Select one or more: a. price changes have no impact on quantity demandedb. a fall in price of 3% will lead to a decline in quantity demanded of more than 3%c. a rise in price will raise total expenditure on the goodd. a 5% rise in price will result in a fall in quantity…