A restaurant hires cooks and walters. Cooks earn $10 an hour; waiters eam $5 an hour. The manager, who wants to maximize the number of meals served given a fixed payroll of $45 per hour, expects the following from cooks and walters: Total number of meals served Number of employees Cooks Waiters 1 200 120 2 380 230 3 540 310 660 360 740 390 Given the above information, at the optimal choice, the last dollar spent on hiring waiters yielded 00000 6 additional meals. 16 additional meals. 80 additional meals. 60 additional meals. none of the above

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Consider a firm that produces output using industrial robots and skilled labor. Suppose it is the case that a reduction in the price of industrial robots causes the firm's labor demand curve for skilled workers to increase (i.e., to shift to the right). This implies that: There is diminishing marginal product of robots. O There is diminishing marginal product of skilled labor. O Robots and skilled labor are complements. O Robots and skilled labor are substitutes. The unit cost of skilled labor is below the unit cost of robots.

Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour. Refer to Table 1-1. Using marginal analysis, how many hours should Eva extend her bakery's hours of operations? 2 hours 3 hours 4 hours 5 hours

Which firm would have more ability to respond to a change in input prices, one where inputs are perfect substitutes or one where they are combined in proportions? Use graphs to help demonstrate answer

Suppose the wage rate for labor is $20 an hour and the rental rate for capital is $50 per hour. Based on this information, please answer the questions appearing below the graph. 80 70 60 50 40 30 20 10 10 20 30 40 50 60 70 80 1,000 cases Labor Draw an (approximate) is-cost line associated with an hourly budget of $1,000. Hint: Find the intercept points first. If you were to shift this line out, what is the approximate least-cost combination of labor and capital when packaging 1,000 cases of fruit juice?

Based on this model, firms earn revenue when firms Event Lorenzo earns $350 per week working for Silver's Gym. Suppose Neha earns $825 per week working as a software engineer for Casement. She uses $8 to take a spin class at Silver's Gym. Silver's Gym pays Lorenzo $350 per week to work as a trainer. Lorenzo uses $250 to purchase software from Casement. Lorenzo spends $250 to purchase software from Casement. Neha spends $8 to take a spin class. purchase Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Neha's labor O O factors O in product markets. The $350 per week Lorenzo earns working for Silver's Gym The $250 Lorenzo spends to purchase software from Casement The spin class Neha receives Product Market Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, Inputs, or outputs. Check all that apply.

1. Recall the Cobb-Douglas production function we worked with in class, f (21, 2) What is the marginal rate of technical substitution (M RTS) based on this production func- 3 tion?

Suppose Mr. Saad is a producer of Lola Loo chocolate, following is the information available of his production plant. Quantity of Labour (L) Quantity of 1 2 3 4 5 Capital (K) 10 15 25 100 50 20 30 40 50 75 50 75 100 125 150200250 300 75 90 105 120 2 30 50 62 15 If K and Lare imperfect substitutes and complements from the information above draw at least three isoquant (map) and identify the level of production. H73 4

What is the best example of a marginal change? After graduating from university, Neville's income increases from $1000 per month to $1,100 per month. Jadelyn completes the six-month probationary period at her job and is now paid $11.25 per hour instead of $11.00. Housing prices in an area increase by 50% when a new freeway is built in a small town. O A hard freeze wipes out half of the potato crop in Prince Edward Island and the price of potatoes doubles.