04 Economic Gaps + macooeconomic Gaps. P SRAS P SRAS SRAS AD y*く y Achoa lc potenooal EX y* Inflabionay G No Gap Recessionayfap yu - yF メ\o0 Loutant Actoal Potential | Gap yF Potential

04 Economic Gaps + macooeconomic Gaps. P SRAS P SRAS SRAS AD yく y Achoa lc potenooal EX y Inflabionay G No Gap Recessionayfap yu - yF メ\o0 Loutant Actoal Potential | Gap yF Potential

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5 Question 5 A bottling company uses two inputs to produce bottles of the soft drink Dr Pibb; bottling machines, K, and workers, L. The firm's production function exhibits diminishing MRTS. At its current level of production, the firm spends 800 per day on machinery and 200 per day paying wages to its workers. At this level of production, the marginal product of the machine is an additional 200 bottles per day and the marginal product of labor is 50 more bottles per day. Is this firm producing at minimum cost? If it is minimizing cost, explain why. If it is not minimizing cost, explain how the firm can lower its cost.
Inefficient production is represented by which point(s)?
3. Understanding the least-cost rule Kevin runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he rents from a local shop for $15 per day, and surfing instructors, whom he hires for $50 per day. Kevin has figured out that the marginal physical product (MPP) of the last instructor hired is 20 lessons, and the MPP of the last board used is 3 lessons. Which of the following statements is correct? O Kevih could lower his costs without reducing his output if he employed fewer instructors and used more surfboards. O Kevin could lower his costs without reducing his output if he employed more instructors and used fewer surfboards. Any of these answers may be right, depending on the price of a lesson. O Kevin currently employs a cost-minimizing combination of surfboards and instructors.
2. Solve the following Economic Production Quantity problem using the following data: A company operates 220 days per year. They use brackets at a steady rate of 50 per day. The brackets can be produced at the rate of 200 per day. Annual storage cost is $2.00 per bracket and machine setup cost is $70 per run. a. What is the Economic Production Quantity? b. How many production runs will be needed per year (approximate)? c. What is Imax? d. What is average inventory?
5) can i get help with this question
3. Optimal use of multiple inputs. In his shop, Jim Valenti retrofits sunroofs into automobiles. The process can use a combination of skilled labor and unskilled labor. Given his current mix of employees, the marginal product of the last unit of skilled labor is 4 sunroofs per day, and the marginal product of the last unit of unskilled labor is 1 sunroof per day. Current market rates for skilled and unskilled labor is $40 and $20, respectively. Is Julian using a least cost combination of inputs? If not, which of type of labor should he use relatively more? Comparison Expression: Result:
40.) What was one negative consequence of the development of factories? a. People migrated to cities for factory jobs b. the first textile factory was built in England c. Diseases spread quickly through cramped factory neighborhoods
3. Understanding the least-cost rule Alex runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he rents from a local shop for $10 per day, and surfing instructors, whom he hires for $50 per day. Alex has figured out that the marginal physical product (MPP) of the last instructor hired is 15 lessons, and the MPP of the last board used is 2 lessons. Which of the following statements is correct? a. Alex could lower his costs without reducing his output if he employed fewer instructors and used more surfboards. b. Any of these answers may be right, depending on the price of a lesson. c. Alex currently employs a cost-minimizing combination of surfboards and instructors. d. Alex could lower his costs without reducing his output if he employed more instructors and used fewer surfboards.
Timmy and Tommy both work at Nook's Cranny, a general store, where they spend all of their time doing one of two tasks: developing crafting projects and placing orders. The graph below shows their production possibilities frontiers for a day of work. Assume they operate efficiently all the time. Use this information for the following 2 problems. Coding Pr IN M 35 HP 13 42 11 30 9 2 T S 012345 1. (General Ideas) Their boss, Mr. Nook, has asked them to create exactly 9 Crafting Projects. Assuming Timmy and Tommy work together, how many Order Placements will get done? a. 11 b. 14 c. 17 d. 20 78 9 10 11 12 13 14 15 16 17 18 19 21 Onder Placement 2. (General Ideas) Tommy learned a new computer operating system, and can now do more Order Placements than he could before. Everything else stays the same. What is the minimum number of achievable Order Placements that would cause a change in Tommy's comparative advantage? a. 12 b. 14 c. 16 d. 18
$$$$$ Financial Planning Life Cycle O Production Dependency 10 20 Borrow Invest Save Steal 30 40 Peak Earning Years 50 Post-Production Consumption Stream Income Stream Suppose a 20 year old wants to take advantage of the high point in the blue line at age 50, how could she do this? 60 70 80 Age