Short Answer 12) Using the following table, which of the production choices (a, b, c, d, e) are technologically efficient? If the price of capital is the same as the price of labor, which choice is economically efficient? Finally, explain the relationship between technological efficiency, economic efficiency, isoquants, and isocost lines. Feel free to use a graph to help show what you are explaining if you'd like, but make sure to clearly label everything on your graph so I can see what you are describing in the graph. Сapital Labor Output 100 100 Production Technique 15 16 C 100 12 9. D. 100 12 4

Short Answer 12) Using the following table, which of the production choices (a, b, c, d, e) are technologically efficient? If the price of capital is the same as the price of labor, which choice is economically efficient? Finally, explain the relationship between technological efficiency, economic efficiency, isoquants, and isocost lines. Feel free to use a graph to help show what you are explaining if you'd like, but make sure to clearly label everything on your graph so I can see what you are describing in the graph. Сapital Labor Output 100 100 Production Technique 15 16 C 100 12 9. D. 100 12 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Consider this simplified sequence: A farmer starts with a unit of wheat and sells it to a miller for 20 cents. The miller grinds it into flour and sells it to a baker for 50 cents. The baker converts all the flour into a loaf of bread and sells it to a grocer for $2.00. The grocer then sells that bread to a customer for $3.35. a) What is the total value added by the grocer? b) What is the total value added by all these stages of production? I c) How much does GDP increase?
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1a. A technology can exhibit constant returns to scale and diminishing marginal product to each factor. True or False? Briefly explain. 1b. A technology can exhibit different kinds of returns to scale at different ranges of production. True or False? Briefly explain.
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Question 9 a) Draw isoquant curves for an economic consulting firm that can always trade two mathematicians for seven economists and still keep the output constant. Put mathematicians on a vertical line the horizontal axis. a horizontal line an upward sloping straight line. an upward sloping curve which is not a straight line • An isoquant curve is 1Select Jan downward sloping straight me an downward sloping curve which is not a straight line L-shaped [ Select ] 0,-2/7,-3.5, -7, 2/7,'3.5, 7, infinite, not exist, none of the above • What is the slope of an isoquant curve at point (20,20)? • What is the slope of an isoquant curve at point (4,17)? [ Select ] 0,-2/7,-3.5, -7, 2/7, 3.5, 7, infinite, not exist, none of the above • What is the slope of an isoquant curve at point (4,12)? [ Select ] 0,-2/7,-3.5, -7, 2/7,3.5, 7, infinite, not exist, none of the above b) Draw isoquant curves for a mathematics department that requires exactly 3 cups of coffee per each mathematician to produce…
Use the table to answer the following questions. The marginal, or additional, gain from Clancy's first hour of work, from 8:00 AM to 9:00 AM, is The marginal gain from Clancy's third hour of work, from 10:00 AM to 11:00 AM, is 30 60 problems. problems. Later, the teaching assistant in Clancy's physics course gives him some advice. "Based on past experience," the teaching assistant says, "working on 22.5 problems raises a student's exam score by about the same amount as reading the textbook for one hour." For simplicity, assume students always cover the same number of pages during each hour they spend reading. Given this information, in order to use his four hours of study time to get the best exam score possible, how many hours should he have spent working on problems, and how many should he have spent reading? Four hours working on problems, zero hours reading O Three hours working on problems, one hour reading Two hours working on problems, two hours reading Zero hours working on…
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Question 13 of 15 Production and Costs: End of Chapter Problems 12. Consider the relationship between average and marginal values. a. Suppose a basketball player is currently averaging 18 points per game but then, in her next game, scores 20 points. As a result of her marginal score of her average score will b. If marginal cost is less than average total cost, then average total cost is Therefore, when the marginal cost curve lies below the average total cost curve, the average total cost curve must be c. If marginal cost is greater than average total cost, then average total cost is Therefore, when the marginal cost curve lies above the average total cost curve, the average total cost curve must be Question Source: Chiang 4e - Economics Principles For A Changing World Publisher: Worth Publishers a 8:42 PM 36 32°F A O i I E 4) 12/8/2021 12
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