Suppose Eleanor is currently using combination D, producing one picture frame per day. Her opportunity cost of producing a second picture frame per day is per day. Now, suppose Eleanor is currently using combination C, producing two picture frames per day. Her opportunity cost of producing a third picture frame per day is per day. From the previous analysis, you can determine that as Eleanor increases her production of picture frames, her opportunity cost of producing one more picture frame Suppose Eleanor buys a new tool that enables her to produce twice as many picture frames per hour as before, but it doesn't affect her ability to produce cutting boards. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more picture frames per hour, Eleanor's opportunity cost of producing cutting boards is previously. it was

Suppose Eleanor is currently using combination D, producing one picture frame per day. Her opportunity cost of producing a second picture frame per day is per day. Now, suppose Eleanor is currently using combination C, producing two picture frames per day. Her opportunity cost of producing a third picture frame per day is per day. From the previous analysis, you can determine that as Eleanor increases her production of picture frames, her opportunity cost of producing one more picture frame Suppose Eleanor buys a new tool that enables her to produce twice as many picture frames per hour as before, but it doesn't affect her ability to produce cutting boards. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more picture frames per hour, Eleanor's opportunity cost of producing cutting boards is previously. it was

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Musashi is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is _______ per day. 1 2 13 15
1)What does the law of increasing opportunity cost?2) Does the law of increasing opportunity cost apply for the Production Possibilities Frontier in the case of Rabbits and Berries?3) If the opportunity cost of Rabbits with respect to Berries (and/or vice versa) was constant, what would the PPF look like?
The utility possibility frontier is defined as the set of maximum utility levels for all consumers that is feasible in the economy, given resource constraints and preferences. For a two-consumer economy, it is defined formally as the solution to: u (ūB) = max u A (xA) subject to ug(xB) > ūg and (xA, XB)feasible. For each of the economies above, find an equation for the utility possibilities frontier, and graph it.
QUESTION 3 Zeus owns a factory which makes guitars which sell for $400 each. The number of guitars he can make in a month depends on the size of his crew. He pays each person on his crew $1500/month. He also pays rent on a building, which he has leased for the remainder of the year for $2000/month. The table below indicates how many guitars can be built, as a function of the size of his crew (the crew size excludes himself). You may assume all other cost, such as materials, are 0. Size of Crew Total # of Guitars 1 4 2 8 3 19 4 28 5 40 6 50 7 58 8 earns without a dollar sign and without a comma). 64 The size of the crew that maximizes the firm's profits is 9 67 10 70 11 72 12 The Marginal product of labor is the additional output per worker. Crew member delivers the greatest marginal product. 74 13 and Zeus dollars in profit per month (please record your answer 75
In the quaint village of Chromaville, all of the residents (including their mayor) are colorblind. The mayor is decorating all the village's lampposts before their annual year-end holiday parade. She has $180 to spend on ribbon. A yard of green ribbon costs $1.50 (per yard). A yard of red ribbon costs $1.25. However, there is a sale on this week: If you buy two yards of green ribbon at the regular price, you get an additional yard of green ribbon for free! a. If yards of red ribbon are measured along the horizontal axis and yards of green ribbon are measured along the vertical axis, what is the slope of the mayor's budget constraint (during the sale)? b. What is the slope of the mayor's indifference curves (if she cannot tell the difference between red and green ribbon)? C. How many yards of red and green ribbon will the mayor purchase (during the sale)?
Steffie's Stationary Services can produce cards and tablets. The daily production possibilities for the two products are shown below. Steffie's Stationary Services Production Possibilities (daily) Combination Cards Tablets A 150 0 B 140 10 C 120 20 D 90 30 E 50 40 F 0 50 If a card sells for $1, Steffie's Stationary Services will need a price per tablet of $ produce 50 tablets. in order to
Two neighboring island nations, Seychelles and Mauritius, produce iPad's, coffee, or a combination of both. Suppose that they each have 4 million labor hours available per week for production. The following table gives the amount of each product that can be produced using one hour of labor: Country Mauritius Seychelles Mauritius' opportunity cost of produing 1 iPad is iPads (per hour of labor) 12 of coffee. Therefore, 8 Initially, suppose Mauritius uses 1 million hours per week to produce iPads and 3 million hours per week to produce coffee, while Seycheles uses 3 million hours of labor per week to produce iPads and 1 million hours per week to produce coffee. Consequently, Mauritius produces 12 million iPads and 72 million pounds of coffee, and Seychelles produces 24 million iPads and 32 million pounds of coffee. Assume there are no other countries willing to trade with them. So, if Mauritius and Seychelles don't trade with each other, they can only consume what they can produce using…
For a certain company, the cost for producing x items is 60x + 300 and the revenue for selling x items is 100x – 0.5x². - The profit that the company makes is how much it takes in (revenue) minus how much it spends (cost). In economic models, one typically assumes that a company wants to maximize its profit, or at least wants to make a profit! Part a: Set up an expression for the profit from producing and selling x items. We assume that the company sells all of the items that it produces. (Hint: it is a quadratio polynomial.) Part b: Find two values of x that will create a profit of $300. The field below accepts a list of numbers or formulas separated by semicolons (e.g. 2; 4; 6 or x + 1; x – 1). The order of the list does not matter. To enter va, type sqrt(a). x = Part c: Is it possible for the company to make a profit of $15,000?
Assume the following: (1) three people go to a restaurant, (2) each person orders a soda for P2 and the group of three orders a large pizza to share for a price of P12 and (3) a fourth person joins the group and orders one soda and is invited to share in eating the pizza. Which of the following statements is false? a. The cost of the fourth person’s soda will be P2. b. The total cost of the four sodas consumed by the group is P 8. c. When the fourth person joined the group the total cost of the large pizza increased to P 16. d. When the fourth person joined the group the average pizza cost per person dropped to P3.
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.…
You manage two chocolate factories. Using only these two factories, you must produce exactly 420 kgs of chocolate daily at lowest possible cost. Mathematically, you have: Q1 = Quantity produced at Chocolate Factory #1 Q2 = Quantity produced at Chocolate Factory #2 Daily total overall production: Q1 – Q2 = 420 At present, each factory produces half the overall requirement. This means that Q1 = 210, Q2 = 210 a) Following your logic , you realize that as long as the marginal cost is different between the two factories, you can lower overall cost while maintaining production at 420 kgs. So, to reduce the overall cost to the lowest possible, you decide to move more than 1 kilogram from one factory to another. As a result, each factory will produce a different quantity of chocolate while the overall daily production remains at 420 kgs. To minimize overall cost, how many kilograms will you order/instruct Factory #1 to produce? Q1 = ____________kgs And how many kilograms would you…
From the previous analysis, you can determine that as Musashi increases his production of tea towels, his opportunity cost of producing one more tea towel decreases increases remains constant