d. A major advance in technology occurs that allows farmers to produce a25-pound gain per lamb with less hay and grain than the preceding tableindicates. If the marginal rate of technical substitution (at each rate ofconsumption of each input) is the same after the technological advanceas before, can you draw the new isoquant corresponding to a 25-poundgain per lamb? 2. A consulting firm specializing in agriculture determines that the followingcombinations of hay and grain consumption per lamb will result in a 25-pound gain for a lamb:Pounds of hayPounds of grain40130.950125.160120.170115.780111.890108.3110102.313097.415093.8

All of the input combinations that tend to yield the same output level are known as an isoquant…

Answered: d. A major advance in technology occurs…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Rita quit her job as dentist where she earned $150,000/year and converted a house that she owns into a museum for her collection of clocks. Before doing this, Rita had been renting the house out for $20,000/year. Rita hired 2 employees for her museum at a total cost of $50,000/year, and had to pay $10,000/year for utilities. Her museum brought in revenues of $125,000 the first year. Someone even offered her $1,000,000 to purchase her entire collection of clocks. She declined this offer. 1) What is Rita's accounting profit during the year? 2. What is Rita's economic profit? Please explain.
The production function for good X in the table below exhibits increasing marginal returns to capital over what outout range? Production Function for Good X Choose Multiple Choice: Between o and 1,524 Between 2,391 and 3,048 Between o and 2,991 Between 3,016 and 2,945 L* K MPK=(AQ/AK) AP=(Q/K) Marginal Product of Average Product of Capital Labor Capital Output Capital 10 57 5.7 5.70 20 324 26.7 16.20 30 657 33.3 40 1,072 41.5 26.80 se 1,524 45.2 30.48 6e 1,976 45.2 32.93 70 2,391 41.5 34.16 se 2,724 33.3 34.e5 9e 2,991 A 33.23 100 3,048 5.7 30.48 11e 3,016 -3.2 27.42 120 2,945 -7.1 24.54
2. A production process using two inputs, labor and capital is Q = 5LK where Q is output per day. MPK = 5L and MPL = 5K. The wage (w) = $150 per hour and (r) = $1,000 per hour. Determine the least cost combination of K and L when the desired output is 1,000 What is the minimum cost of producing 1,000 per day?
Another farmer purchases nitrate and phosphate fertilizers to produce corn, and the more of any one input he uses, the lower the marginal productivity of that input. Suppose the farmer decides to maximize output for a given cost. (That is, imagine a given isocost line.) Suppose the price of nitrate is 36 cents per pound and the price of phosphate is 24 cents per pound. Moreover, suppose the farmer currently chooses an input combination such that the marginal product of a pound of nitrate is 4 bushels of corn and the marginal product of a pound of phosphate is 3 bushels of corn. Should the farmer use the current mix of nitrate and phosphate? Should he use more nitrate and less phosphate? Or, should he use more phosphate and less nitrate? Please carefully draw a diagram with pounds of nitrate plotted along the horizontal axis and pounds of phosphate plotted along the vertical axis to support your conclusion. Moreover, please report the slope of the isocost line. And please report the…
Find the elasticity of scale and the elasticity of substitution for the CES production function: 1 1 f(x₁, x₂) = (x³ + x2)³. Solution: We first calculate the marginal products: 2 fx₁ = 3 + = x1fx1 -+ 2 2 10 - ² ( x² + x ) ( + x^²) = ( + + + + ² ) 15 ²0 x² -2/3 x₂ + x2fxz Elasticity of scale = _1₁_+_*__*(+)´<°¸«d«)*;»_ f(x1, f(x1, ‹2)² = -2/3 r2/3 = TRS = t (where TRS = =t). ⇒ r = t³/² ⇒ ln(r) = ln (t) and o = -2/3 dln (r) dln (t) To get elasticity of substitution, we first need TRS and denote r = 1 x3 X1 TMS - F (+4+2)0 = fx₁ fx₂ 2 1 + x²) x₂² MIN x2 3 -2/3 (x² -2/3 2 2/3 2/3 x1 -2/3 = r²/3 x¹/3 + 1/3 = 1.
What effect might a decrease in the demand for high definition televisions have on the short-run average total costcurve for this product?
Input either "increase" or "decrease" where relevant: A decrease in the price of a complementary good will cause its complement’s equilibrium price to ...... and the equilibrium quantity to .....
4 The prices of inputs x1; x2; x3; x4 are p1 = 2; p2 = 2; p3 = 5; and p4 = 2. If the production function is given by f(x1, x2, x3, x4) = min{x1, x2} + min{x3, x4}, what is the minimum cost of producing one unit of output?.
Kris wants to open a BBQ restaraunt. He has signed a 12- month lease at $6,000 per month. The lease enabled him to rent a restaraunt with all the equipment he needs to make BBQ; therefore, K equals 1. Kris must pay his workers a monthly salary of $2,400 each. His production function is q = 100L1/2K1/2 where q is the quantity of BBQ prepared per month in pounds, L is the number of workers employed per month, and K is the quantity of capital employed, and, as previously indicated, K is assumed to equal 1. What does Kris's monthly total cost expressed as a function of quantity equal?
Given the following data on input and output levels. Suppose the output price is $5 and input price is $10. Find the values of APP and MPP when X = 6: X 0 2 4 6 8 10 12 Y 0 100 250 450 600 700 750 50 and 150 6 and 200 100 and 75 75 and 100
Input either "increase" or "decrease" where relevant: An increase in the prices of inputs will cause the equilibrium price to ....... and the equilibrium quantity to .....
Suppose that the production function for Hannah and Sam's home remodeling business is Q = F(L,K) Q = 10L0.1K0.4.Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $1,000 per week.a. What is the least-cost input combination for remodeling 400 square feet each week? Instructions: Round your answers to 2 decimal places. units of labor and units of capital. b. What is the total cost? Instructions: Round your answer to 2 decimal places. $ .revised jrl 08-11-2011

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS