### Question 8#### Figure 2-4![Production Possibility Curve](#)The graph in Figure 2-4 represents a production possibility curve showing the trade-offs between two goods: toasters (on the vertical axis) and tooth brushes (on the horizontal axis).- The curved line represents the production possibility frontier (PPF), which illustrates the maximum possible production levels of the two goods given available resources and technology.- Points on the curve (like points A and B) represent efficient production points where resources are fully utilized.- Points inside the curve (like point D) represent inefficient production where resources are not fully utilized.- Points outside the curve (such as point C) are unattainable with the current resources and technology.**Graph Points:**- Point A: Located on the curve.- Point B: Located on the curve.- Point C: Located outside the curve.- Point D: Located inside the curve.**Question: Inefficient production is represented by which point(s)?****Options:**- ○ A, B- ○ C- ○ C, D- ○ D**Answer:**- The point representing inefficient production is **D**. Inefficient production occurs when resources are not fully utilized, which is represented by points inside the production possibility curve.

Points lying on the production possibility curve are the combinations of toasters and toothbrushes…

Answered: Refer to Figure 2-4. Inefficient…

Business

Economics

Refer to Figure 2-4. Inefficient production is represented by which point(s)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 3. Consider a producer with the production function y = J(L + K). The price of L is 2 and the price…

A: Given, Production function y=L+Ky2=L+K Price of L = 2 Price of K = 4 The cost function, C=PL×L…

Q: MNLogs harvested logs (with no inputs from other companies) from it's property in Northern…

A: GDP or gross domestic product refers to the monetary value of all final goods and services produced…

Q: Name the following Refers to the situation in which the increase in the scale of the production give…

A: According to the given question Production in economic means that the process or the step which the…

Q: X and Y are both factors of production. X's marginal product is 30 and Y's is 20. X is $5 each and Y…

A: A profit maximizing firm recruit the resource at the point where the marginal product of resource…

Q: Write a synthesis about this, "The Cost of Production"

A: The process of combining a variety of material and immaterial inputs (plans, know-how) to create a…

Q: What do we assume to be the goal a typical firm in the production model pursues? A. Maximized…

A: A market consists of many firms and consumers. Firms are supplier of goods and services. Consumers…

Q: Hisham owns a factory producing furniture, He is planning to expand production to attain the long…

A: After determining the least expensive manufacturing technique, a company can think about the best…

Q: Carry out the following tasks to illustrate the law of diminishing returns: i. Deduce a production…

A: The production function determines all the input bundles that produce the same output level.The…

Q: Point C only. O Points D and B. Points D, C, and B. O Point D only.

A: The cost is minimized where the isocost line tangents the isoquant.

Q: Suppose a soap-manufacturing production process is described by the following equation: Y = a + b…

A: The marginal product of labor measures the change in output due to change in labor. Mathematically,…

Q: Figure 2-6 c) C, F, G 4s d) D 25 * 15 Refer to Figure 2-6. Inefficient production is represented by…

A: The production possibility frontier (PPF) takes into consideration the concepts of choice, scarcity,…

Q: 1. Provide a diagram of what happens to the unit cost of production when economies of scale are…

A: The idea of economies of scale, in which average costs fall as production develops, may appear to be…

Q: Three managers of APISYONADO Company are discussing a possible increase in production who do you…

A: MR.NADO is correct as according to him the extra revenues from selling the additional perfume…

Q: D The Cobb Douglas Production function is Q = AL"K". Check if Euler's Theorem holds. [7

A: This is Cobb Douglas function degree one. Here, the Euler theorem hold.

Q: The table below shows the cost data of a furniture manufacturer named Cindy's Custom Made. a)…

A: (a) Table QTotal hoursAverage hours=total hours/QMarginal hoursTVC =14* total hours AVC= TVC/…

Q: Select all that apply A production function can include many inputs. Which of the following are the…

A: The inputs such as capital, labor and land are used to produce and output in the market is known as…

Q: Sarah Sandoval is a coffee farmer trying to decide how many tons of coffee to produce. She can sell…

A: In a perfectly competitive market, there exists a large number of buyers and sellers of the good in…

Q: Distinguish between economies and diseconomies of scale, ensuring to differentiate between internal…

A: The difference between economies and diseconomies of scale: In both the enterprises: public and…

Q: Suppose that we have a technology with decreasing returns to scale and two firms that can use this…

A: Returns to scale is a term that refers to the proportionality of changes in output after the amounts…

Q: Problem #62. Use the equal marginal principle in production to explain the effects of the following…

A: Equi-marginal principle: It refers to the principle which is similar or whose base is the law of…

Q: Let y = f(x1, x2)=x112+x1X2 be a firm's production function, where x120, x220. e a. Write down the…

A: Firm's production function y=x11/2+x1 x2 where x1≥0 and x2≥0

Q: rm uses machines, labor and output to produce output. Labor is a variable input and costs he hours…

A: According to the question, given information given :Cost : $25 hourExtra unit of output required $…

Q: a. Under autarky (in absence of trade), a unit cost of labor (w) is $40 and a unit cost of capital…

A: The combination of factor-inputs that a firm uses to produce output is determined by the amount of…

Q: soquant curves and isocost curves are tools that can explain how a firm might best respond to…

A: The cost is the payment made in the production process by the producer on rent, wages, interest, and…

Q: Exercise 1 Oscar, a woodworker, builds coffee tables using both labor (L) and tools (capital, or K).…

A: "As stated by client, answers to part c,d and e are provided only." The production function for the…

Q: DISCUSS Smith's pin factory example. describe the dramatic effects and the method by which these are…

A: A worker who specializes performs only one task or a limited set of tasks. It refers to separate…

Q: 24. A specific production process can be represented by the production function, f(x1, x2) = (x 1/2…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: Capital: Capital is a term that refers to financial assets, including specific funds invested in…

Q: The table below provides information about the cost of inputs and value of output for the production…

A: To calculate the value added at each stage of production and the total contribution of the bike to…

Q: Utopia produces only two products: cheese and wine. The production levels are shown in the table…

A: A production possibility table depicts the combination of two goods that can be produced by using a…

Q: Quantity of output (# of cookies per hour) Total product curve Quantity of Input (# of workers) .…

A: The figure you sent shows a total product curve, which shows the total number of cookies produced as…

Q: The period of a time when a firm is able to change all of inputs factors of production is called…

A: The period of time is important from the point of view of the producer, as time period limit his…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: The total cost incurred by firms includes fixed costs and variable costs. Fixed costs are the costs…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: The relationship between the quantity of input (number of workers) and the quantity of output…

Q: When a firm uses resources to produce a particular output, the implicit cost of alternative outputs…

A: The costs that are explicitly stated in the books of accounts and included in the cost of production…

Q: Draw a well behaved production function and show the 3 stages of production. What distinguishes…

A: The production function shows the technical relationship between factor of production and final…

Q: We know there is a link between productivity and costs. For example, recall the link between the…

A: In an economist's terms, when we talk about productivity, then we are talking about the marginal…

Q: Identify a correct statement about household production. O Household production is more likely to…

A: Household production is more likely to occur when the opportunity cost of household work is…

Q: 4. What is the significance of the point where the marginal cost curve intersects the average total…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Show illustration and explain the special case of production functions "Fixed proportions production function."
If production increases, what happens to average variable cost (AVC), does it increase only, decrease only, or decrease, increase and then increase? _______________ choose one
What is the law of diminishing marginal product, In which stages of production it manifest and What is the logical justification for the law of diminishing marginal
True/False: Ryan has coffee shop. If the marginal cost of producing the tenth cup of coffee is $1.50, and if the average total cost of producing the nine cups of coffee is $2, then find the average total cost of producing the ten cups of coffee. Show your work.
For an economist, a technology is: A method of combining resources to make goods and services. 8 8 8 A computer. A capital-intensive method of production. Any production technique that is patented.
Explain any assumptions and arguments we must use in order to conjecture that firms choose the production level that minimises their average cost under some reasonable conditions.
Question 4.4. Which expression is another way of saying "marginal cost"? Scarce resources Additional cost Opportunity cost Unrecognized cost
Problem 2 (a) Find an example of a production technology that is such that two inputs must be used in fixed proportions (hopefully a different one from the examples discussed in class). Explain why you chose this example. Draw a typical isoquant of the example you found. (b) Find an example of a production technology that is such that two inputs are completely inter- changeable. Explain why you chose this example. Draw a typical isoquant of the example you found. (c) Find an example of convexity of production technology. Explain why you chose this example. Draw a typical isoquant of the example you found.
If production increases, what happens to average total cost (ATC), does it increase only, decrease only, or decrease, increase and then increase? _______________ choose one
Which of the following statements correctly explains the average cost and the marginal cost of production? a. Marginal cost is equal to the profit- maximising price set by a firm that produces a differentiated good. b. Average cost is the vertical intercept of the total cost curve. C. Marginal cost is calculated as the total cost divided by the quantity d. Average cost is at its minimum when it is equal to marginal cost. e. Marginal cost is always higher than average cost.