Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 13, Problem 4QP
Compare the firm’s least-cost rule with how buyers allocate their consumption dollars.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
You are the manager of a firm that specializes in small single-board widgets.Your goal is to determine the number of units (Z) that must be produced and sold by your firm each month in order to maximize profits. The total benefits (revenues) and costs to your firm of producing various quantities are given in the first three columns of the following table. Based on this scenario, complete the table and answer the accompanying questions:
Control Variable
(Z)
Total Benefits
B(Z)
Total Cost
C(Z)
Net Benefits
N(Z)
Marginal Benefit
MB(Z)
Marginal Cost
MC(Z)
Marginal Net Benefit
MNB(Z)
0
0
0
1
200
10
2
380
30
3
540
60
4
680
100
5
800
150
6
900
210
7
980
280
8
1040
360
9
1080
450
10
1100
550
A. Graph the total cost and total benefit curves.B. On another graph, plot the points for the marginal cost, marginal benefit, and marginal net benefit.C. Show how the two…
You are the manager of a firm that specializes in small single-board widgets.Your goal is to determine the number of units (Z) that must be produced and sold by your firm each month in order to maximize profits. The total benefits (revenues) and costs to your firm of producing various quantities are given in the first three columns of the following table. Based on this scenario, complete the table and answer the accompanying questions:
Control Variable
(Z)
Total Benefits
B(Z)
Total Cost
C(Z)
Net Benefits
N(Z)
Marginal Benefit
MB(Z)
Marginal Cost
MC(Z)
Marginal Net Benefit
MNB(Z)
0
0
0
1
200
10
2
380
30
3
540
60
4
680
100
5
800
150
6
900
210
7
980
280
8
1040
360
9
1080
450
10
1100
550
a. How many units (Z) maximize net benefits?b. What is the relationship between marginal benefits and marginal costs at the level of Z you determined above?c. Graph the total…
suppose a firm's objective is to maximise its output in a given constraint for expenditure.?discuss least cost combination for this objective of the firm?
Chapter 13 Solutions
Microeconomics
Ch. 13.1 - Prob. 1STCh. 13.1 - Prob. 2STCh. 13.1 - Prob. 3STCh. 13.1 - Prob. 4STCh. 13.2 - Prob. 1STCh. 13.2 - Prob. 2STCh. 13.2 - Prob. 3STCh. 13.2 - Prob. 4STCh. 13 - Prob. 1QPCh. 13 - Prob. 2QP
Ch. 13 - Prob. 3QPCh. 13 - Compare the firms least-cost rule with how buyers...Ch. 13 - Prob. 5QPCh. 13 - Prob. 6QPCh. 13 - Prob. 7QPCh. 13 - Prob. 8QPCh. 13 - Prob. 9QPCh. 13 - Prob. 10QPCh. 13 - Prob. 11QPCh. 13 - Prob. 12QPCh. 13 - Prob. 13QPCh. 13 - Prob. 14QPCh. 13 - Prob. 15QPCh. 13 - Prob. 16QPCh. 13 - Prob. 1WNGCh. 13 - Prob. 2WNGCh. 13 - Prob. 3WNGCh. 13 - Prob. 4WNGCh. 13 - Prob. 5WNG
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
- Describe the Edgeworth box.arrow_forwardQ 1) WHAT IS THE AMOUNT OF THE PRODUCER'S EXPENDITURES IN THE MARKET BELOW, GIVEN Pe and Qe YOU DEFINE? Q 2) WHAT IS THE AMOUNT OF NET BENEFITS THAT CONSUMERS EXPECT TO RECEIVE FROM CONSUMING THE FOURTH BANANA?arrow_forwardBecause one’s productivity in the workplace is likely to be affected by one’s health, investment in health could increase earnings to the extent that one might spend money on health care without reducing his or her consumption of other goods. True or Falsearrow_forward
- Which statement best explains how total utility affects production? A company should produce enough so that the revenue from the extra units exceeds the extra costs to produce them. A company should make just enough of a product so that the consumer is left wanting more. A company should stop producing when marginal returns begin to increase. A company should make as much of a product as possible in order to dominate the market.arrow_forwardAn economist estimates the value of a nature preserve by calculating the price premium people pay for houses located adjacent to the preserve. This is an example of what type of economic valuation? a. Hedonic pricing b. Replacement cost methods c. Contingent valuation d. Travel cost models e. Defensive expendituresarrow_forwardGive typing answer with explanation and conclusion Graphically illustrate and explan the impact of expensive and erratic electrivity on the market for Ferrochrome?arrow_forward
- By means of two examples,explain the principle that economic agents take decisions at the marginarrow_forwardDraw graphs to show "People respond to incentives and disincentives" in relation to the demand curve and supply curve for good X.arrow_forwarda hicksian demand is found by minimizing cost subject to a budget constraint. is it true or false?arrow_forward
- Explain equilibrium. Be specific and provide at least one example.arrow_forwardExplain the technique of constrained optimization in relation to utility functions and how it relates to consumer equilibrium.arrow_forwardAnderson is willing to pay $12. Kendrick can provide the item for $10, but producing the item imposes a cost of $8 on Talib. If Anderson purchases the item from Kendrick for $11, what is the total surplus from the transaction? (Remember, do not enter the $, and enter the - if TS is negative.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
The CASH FLOW STATEMENT for BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=DiVPAjgmnj0;License: Standard Youtube License