Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 29, Problem 6E
To determine
To compute:
The number of units employed when price rises from $10 to $12 to $14 to $18 to $20.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
If resource prices are fixed and the selling price rises, then
a.
profits will increase.
b.
profits will decrease.
c.
profits will remain constant.
d.
both profits and output will decreas
A firm produces two different kinds A and B of a commodity.The daily cost of producing x units of A and y units of B is C(x,y)=20(x^2+xy+y^2).Suppose that the firm sells all at a price per unit of 240 for A and 180 for B.
1)find the daily production level that maximizes profit and confirm its maximum.
2)Suppose the firm is required to produce exactly 5 units in all.what are now the optimal production level of x and y.
Provide a diagram showing the inefficient or underemployed resources in a hypothetical economy
Knowledge Booster
Similar questions
- A decrease in the productivity of a resource will decrease the demand for that resource. true or false?arrow_forwardFrom a resource-based perspective: what resources are needed to develop a machine for a distance market, such as China, and where in the MNE are those to be found?arrow_forwardWhich of the following is defined as the value of the resources used compared to the value of the resources saved or created? Group of answer choices Absolute profit Absolute benefit Absolute cost Absolute pricearrow_forward
- Assume the relationship between the growth of a fish population and the population size can be represented as g= 8S – 0.2S2, where g is the growth in tons and S is the size of the population (in thousands of tons) a. Given a price of $100 a ton of fish, what is the marginal benefit of smaller population sizes?arrow_forwardA bus trip to San Diego costs $10 and takes eight hours. The same trip can be made by plane for $58 and takes two hours. If you can work for $5 per hour, your opportunity cost of making the trip by bus and by plane are, respectively:arrow_forwardAt Yennefer's current production level, a extra bunch of herbs adds 24 extra spells. Each bunch of herbs costs $61. What is Yennefer's Marginal Cost of an extra spell?arrow_forward
- Consider the following marginal cost function MC= 5 + 2qi. (a) Does the production process exhibits increasing returns? decreasing returns? constant returns? (b) If the price is $23. What’s the optimal production level? (c) If the price is $31. What’s the optimal production level?arrow_forwardWhy hasn't the depletion of nonrenewable resources happened as predicted? Do the pricing signals at this time indicate that nonrenewable resources are almost exhausted?arrow_forwardResources are allocated among industries in response to signals sent by both product and resources ...................... . These also indicate which resources would be combined in what way, in the production of a good or service, in order to ..................... production costs, thereby using society's scarce resources most ...................... . A person can increase his income by producing .................... output or by specializing in the production of something for which society is willing to pay a higher price (relative to cost). The ........................ of goods, services and resources are not determined by some government agency, but by countless decisions of individuals about which goods and services to produce and buy.arrow_forward
- Suppose that a natural disaster destroyed a significant amount of farmland in the Midwest. Provide examples of how this flooding affects the marginal productivity and price of inputs of the remaining land, labor, and capital.arrow_forward6 workers and 4 machines are required to produce 2 computers. 2 workers and 2 machines are required to produce 2 units of tomato. A. Find the labor and capital requirement per one computer and 1 unit of tomato? B. Which industry is a labor intensive? Capital intensive?arrow_forwardExplain the term resource in economicsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
