2. Suppose that computers use 2 units of capital for each worker, so that Kc = 2. Lc, whereas shoes use 0.5 unit of capital for each worker, so that Ks = 0.5 Ls. There are 100 workers and 100 units of capital in the economy. b) a) Solve for the amount of labor and capital in each industry and graph them in a box diagram. Suppose that the number of workers increases to 125 due to immigration, keeping total capital fixed at 100. Again, solve for the amount of labor and capital used in each industry and show in your previous graph. c) Suppose instead that the amount of capital increases to 125 due to FDI, keeping the total number of workers fixed at 100. Again, solve for the amount of labor and capital used in each industry. Graph in a new box diagram

2. Suppose that computers use 2 units of capital for each worker, so that Kc = 2. Lc, whereas shoes use 0.5 unit of capital for each worker, so that Ks = 0.5 Ls. There are 100 workers and 100 units of capital in the economy. b) a) Solve for the amount of labor and capital in each industry and graph them in a box diagram. Suppose that the number of workers increases to 125 due to immigration, keeping total capital fixed at 100. Again, solve for the amount of labor and capital used in each industry and show in your previous graph. c) Suppose instead that the amount of capital increases to 125 due to FDI, keeping the total number of workers fixed at 100. Again, solve for the amount of labor and capital used in each industry. Graph in a new box diagram

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. Units of Labor Multiple Choice 100 1 2 3 4 5 150 1 50 110 150 170 160 Units of Capital 2 120 260 360 430 480 If labor is fixed at three units, how much does the second unit of capital add to total output? 3 160 360 510 630 710 4 4 180 390 560 690 790
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Problem 1 - Macroeconomics - please help.
b. The Yorkshire Cricket Company makes cricket bats out of lumber supplied to it by Acme Sporting Goods, which pays Yorkshire £10 for each finished bat. Yorkshire's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. Number of bats per day 0 5 10 15 20 25 30 35 Number of employee-hours per day 0 1 2 4 7 11 16 22 (i) If the wage is £15 per hour and Yorkshire's daily fixed cost for the lathe and building is £60, what is the profit-maximising quantity of bats? (ii) What would be the profit-maximising number of bats if the firm's fixed cost were not £60 per day but only £30? (iii) How would Yorkshire's profit-maximising level of output be affected if the government imposed a tax of £10 per day on the company? (Hint: This tax independent from the production level.) (iv) What would Yorkshire's profit-maximising level of output be if the government…
Country Denali Congaree Suppose that initially Denali uses 1 million hours of labor per day to produce shorts and 3 million hours per day to produce almonds, while Congaree uses 3 million hours of labor per day to produce shorts and 1 million hours per day to produce almonds. As a result, Denali produces 6 million pairs of shorts and 36 million pounds of almonds, and Congaree produces 12 million pairs of shorts and 16 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of shorts and almonds it produces. Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) 6 12 16 Denali's opportunity cost of producing 1 pair of shorts is of almonds. Therefore, comparative advantage in the production of almonds. 4 Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In…
Table 19.15 shows how the average costs of production for semiconductors (the "chips" in computer memories) change as the quantity of semiconductors built at that factory increases. a. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? b. If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? c. Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers. Quantity of Semiconductors 10,000 20,000 30,000 40,000 100,000 Table 19.15 Average Total Cost $8 each $5 each $3 each $2 each $2 each
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Q.13. Subject :- Economy