Below is a production possibilities curve involving tea and videos.200016001200N800400PPIQuantity of tea per year (in tonnes)100 200 300 400500 600 700Quantity of videos per year (in thousands)PPINRefer to the graph above to answer this question. What is indicated by the shape of both the PPI and the PPIIcurves?Select one:A. Constant costs.B. Increasing costs.C. Alternative costs. XD. Decreasing costs.

Production possibility frontier or PPF shows the different combinations of two goods that can be…

Below is a production possibilities curve involving tea and videos. Quantity of tea per year (in tonnes) 2000 1600 1200 800 400 PPI 100 200 300 400 500 600 700 Quantity of videos per year (in thousands) Select one: PPIN Refer to the graph above to answer this question. What is indicated by the shape of both the PPI and the PPII curves? A. Constant costs. B. Increasing costs. C. Alternative costs. X

Below is a production possibilities curve involving tea and videos. Quantity of tea per year (in tonnes) 2000 1600 1200 800 400 PPI 100 200 300 400 500 600 700 Quantity of videos per year (in thousands) Select one: PPIN Refer to the graph above to answer this question. What is indicated by the shape of both the PPI and the PPII curves? A. Constant costs. B. Increasing costs. C. Alternative costs. X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Questions 8-9
1.Prepare a table with MC, ATC, AVC and AFC curves. Be sure to INCLUDE NUMBERS IN YOUR GRAPH. ALSO, PLOT THE CURVES Please create a picture illustration using the provided instructions. Example numbers may be used to complete the question. Please include details as I need an understanding of the material. If you don't understand the question skip it please.
2b statements is true or false and explain If marginal cost is larger than average cost, average cost will fall as output increases.
detail explanation req
Specify and explain the typical shapes of marginal-benefifit and marginal-cost curves. How are these curves used to determine the optimal allocation of resources to a particular product? If current output is such that marginal cost exceeds marginal benefifit, should more or fewer resources be allocated to this product? Explain.
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…
3. The company that you manage has already spent $8 million on developing a new product – awebsite that combines You Tube, Twitter, and Facebook – called You Twit Face. Thedevelopment is not quite finished. It will cost an extra $2 million to finish development andcomplete the product. Assume that this $2 million amount includes the explicit costs and anyopportunity cost that the company may have. At a recent meeting, your salespeople report thatthe expected sales of your new product (if you finish) are $6 million total. If you do not finishdeveloping the product you can sell the incomplete product to another company for $2 million. What is the MC of finishing the development? __________________ What is the MB of finishing the development? __________________ Should you finish the product? Why or why not? Use the idea of “thinking at the margin” toexplain your answer. Need details explanation
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