MICROECONOMICS >IA<
FD Edition
ISBN: 9781260511055
Author: McConnell
Publisher: MCG
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Chapter 2, Problem 8DQ
To determine
Creative destruction and it relevance.
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With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also, assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. If the firm can sell these 400 loaves at $2 per unit, will it continue to produce banana bread? If this firm’s situation is typical for the other makers of banana bread, will resources flow to or away from this bakery good?
From the list below, select the characteristics thatdescribe a good economic model. [LO 1.6]a. Includes every detail of a given situation.b. Predicts that A causes B.c. Makes approximately accurate assumptions.d. Fits the real world perfectly.e. Predicts things that are usually true.
Your friend Sam has been asked to prepare appetizers for the university reception. She has anunlimited amount of ingredients and 6 hours inwhich to prepare them. Sam can make 300 minisandwiches or 150 servings of melon slices toppedwith smoked salmon and a dab of sauce per hour.[LO 2.1]a. What is Sam’s opportunity cost of makingone mini-sandwich?b. What is Sam’s opportunity cost of baking onemelon appetizer?c. Suppose the reception has been postponed,and Sam has an extra 4 hours to prepare.What is the opportunity cost of making onemini-sandwich now?d. Suppose the reception has been postponed,and Sam has an extra 4 hours to prepare.What is the opportunity cost of making onemelon appetizer now?e. Suppose Sam’s friend Chris helpsby preparing the melon slices, increasingSam’s productivity to 300 mini-sandwichesor 300 melon appetizers per hour. What isthe opportunity cost of making one minisandwich now?f. Suppose Sam’s friend Chris helps by preparing the melon slices, increasing…
Chapter 2 Solutions
MICROECONOMICS >IA<
Ch. 2.2 - Prob. 1QQCh. 2.2 - Prob. 2QQCh. 2.2 - Prob. 3QQCh. 2.2 - Prob. 4QQCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQ
Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4P
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