Suppose a bakery has 14 employees to be designated as bread bakers (B) and cake bakers (C), so that B +C= 14.Given the following production functions,y = 480.5 and x= c0.5an equation for the production possibilities frontier isy= 4/14-xGiven the following production functions,y = B and x= 5c°.5,an equation for the production possibilities frontier isy =

B + C = 14where B stands for bread bakers and C stands for cake bakers. Initial production functions…

Answered: Suppose a bakery has 14 employees to be…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which situation would most likely cause a nation's production possibilities curve to shift inward? The construction of more capital goods An increase in discrimination based on race An increase in the number of skilled immigrant workers The destruction from bombing and warfare in a losing military conflict
Problem 2: Production economy Consider a production economy with two firms, X and Y, and two factors of production, labor and capital. Firm X produces the output good X with a technology that can be de- scribed by the following production function: fx(lx, kx) = lx + kx, where lx is the quantity of labor and kx is the quantity of capital. Firm Y produces the output good Y with a technology that can be de- scribed by the following production funetion: fr(ly, ky) = y + VAy, where ly is the quantity of labor and ky is the quantity of capital. The economy has a total endowment of labor L > 0 and a total endowment of capital K = L. The price of the good X is p > 0 and the price of good Y is q = 1. These output prices are determined on international markets and are not affected by the supply decisions of the firms. (a) Find the set of production efficient allocations in this economy. Illus- trate the set of efficient factor allocations in a Bowley box diagram. Describe and illustrate the…
Answer each of the following questions as either true or false. For a statement to be “true,” it must always be true. If there is at least one case where the statement is not true (or if you need more information to be sure), answer “false.” You must justify each answer with an appropriate explanation or counterexample (which may include a relevant diagram). A firm can make widgets using capital and labor according to the production function f(K,L) = 100L + 0.5K. Denote the wage w and the rental rate on capital r. If r is sufficiently high, the firm will not hire any capital, no matter how many widgets it wants to produce.
Suppose there exist two imaginary countries, Sequoia and Denall. Their labor forces are each capable of supplying four million hours per week that can be used to produce almonds, shorts, or some combination of the two. The following table shows the amount of almonds or shorts that can be produced by one hour of labor. Almonds Country (Pounds per hour of labor) Sequoia Denall Suppose that initially Denall uses 1 million hours of labor per week to produce almonds and 3 million hours per week to produce shorts, while Sequoia uses 3 million hours of labor per week to produce almonds and 1 million hours per week to produce shorts. As a result, Sequola produces 12 million pounds of almonds and 16 million pairs of shorts, and Denall produces 6 million pounds of almonds and 36 million pairs of shorts. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of almonds and shorts it produces.…
Which situation would most likely cause a nation's production possibilities curve to shift inward? The construction of more capital goods An increase in discrimination based on race An increase in the number of skilled immigrant workers The destruction from bombing and warfare in a losing military conflict
Question 1: Consider the following production function that depends only on labor:Q = 81¹/2 1. Write a combination of input and output that are technically efficient. In other words, for what level of L and Q, is the technology efficient? 2. Write a combination of input and output that are technically inefficient. In other words, for what level of L and Q, is the technology inefficient? 3. Write a combination of input and output that are technically unattainable. In other words, for what level of I and Q, is the technology unattainable?
3
Ron can either workout or make sushi rolls. It takes him 40 minutes to finish 1 workout and 20 minutes to make 1 sushi roll. If he has 120 minutes to do these two activities, what is the equation of the production possibility frontier (PPF) that describes the tradeoff between these two activities? (Assume workouts are on the x axis and sushi rolls are on the y axis) A y=6-2x B y=3-0.5x C y=3-2x D y=6-0.5x
Assume instead that pharmacists and robots dispense prescriptions according to the following production function: Y = 10*KO.8L0.2 where Y is the number of prescriptions dispensed; L is the number pharmacist hours, and K is the number of robot hours. In addition, $10 worth of materials is used for each prescription. a. What is this type of production function called, and what are we assuming about the relationship between robots and pharmacists by using this production function? b. Derive the cost - minimizing demands for K and L as a function of output, the wage rate and the rental rate of capital. c. Use these results to derive the total cost function: costs as a function of y, r, w, and the $10 materials cost. d. Pharmacists earn $32 per hour. The rental rate for robots is $64 per hour. What are total costs as a function of Y? e. Does this technology exhibit decreasing, constant, or increasing returns to scale?f. The pharmacy plans to produce 40,000 prescriptions per week. At the…
Suppose an economy uses only two inputs in production: capital and labour. The following table describes a production function, where y stands for output per worker and k is capital per worker.Suppose there are two countries, A and B. The economies of the two countries can be described by this production function. If Country A has initially a capital–labour ratio k = 0.167 and Country B has k = 0.412, show that an equal increase in capital produces more extra output in country A than in Country B. Explain with words (computations) + graph y k 0.000 0.000 0.173 0.030 0.302 0.091 0.408 0.167 0.480 0.231 0.535 0.286 0.577 0.333 0.612 0.375 0.642 0.412 0.667 0.444 0.688 0.474 0.707 0.500 0.724 0.524 0.739 0.545
qUESTION 3 Please help me figure out which of the following multiple choice questions are correct. Please tell me which choices are correct and which are wrong
Consider two neighboring island countries called Bellissima and Felicidad. They each have 4 million labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Country Corn Jeans (Bushels per hour of labor) (Pairs per hour of labor) Bellissima 8 16 Felicidad 5 20 Initially, suppose Bellissima uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans, while Felicidad uses 3 million hours of labor per week to produce corn and 1 million hours per week to produce jeans. Consequently, Bellissima produces 8 million bushels of corn and 48 million pairs of jeans, and Felicidad produces 15 million bushels of corn and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount…

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