Suppose Raphael is currently using combination D, producing one car per day. His opportunity cost of producing a second car per day is per day. Now, suppose Raphael is currently using combination C, producing two cars per day. His opportunity cost of producing a third car per day is per day. From the previous analysis, you can determine that as Raphael increases his production of cars, his opportunity cost of producing one more car

Suppose Raphael is currently using combination D, producing one car per day. His opportunity cost of producing a second car per day is per day. Now, suppose Raphael is currently using combination C, producing two cars per day. His opportunity cost of producing a third car per day is per day. From the previous analysis, you can determine that as Raphael increases his production of cars, his opportunity cost of producing one more car

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various level of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories. Q = 50 1 140 2 230 3 320 Q = 100 60 110 160 Average Total Cost (Dollars per bike) Q = 150 Q = 200 40 40 80 80 40 40 Q = 250 160 110 60 Q = 300 320 230 140 per bike. Suppose Ike's Bikes is currently producing 300 bikes per month in its only factory. Its short-run average total cost is $ Suppose Ike's Bikes is expecting to produce 300 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using one factory one factory On the two factories its SR plot the three SRATC curves for Ike's Bikes from the previous…
Bonnie and Clyde are next-door neighbors. Both have identical yards with identical pools, The table below shows the amount of time it takes them to complete their yard work. Bonnie Clyde Rake the yard 40 minutes 150 minutes Clean the pool 180 minutes 120 minutes Bonnie and Clyde agree to completely specialize in the task for which they have the lower opportunity cost. In other words, one person will rake both of the yards, and one person will clean both of the pools. If they do this, how many minutes did Bonnie save by agreeing to this deal, compared with the original situation where she would have to rake one yard and clean one pool?
***PLEASE NOTE - An answer is NOT needed for parts A, B and C; these are included to assist with answering part D. Only an answer for part D is required, but it is derived from the previous answers*** Given: A farmer raises peaches using land (K) and labor (L), and has an output of ?(?,?)= ?0.5?0.5 bushels of apples. a. Find several input combinations that give the farmer 6 bushels of apples. Sketch the associated isoquant on a graph, with L on the x-axis and K on the y-axis. b. In the short run, the farmer only has 4 units of land. What is his short-run production function? Graph it for values of L from 0 to 16, with L on the x-axis and output on the y-axis. What is the name of the slope of this curve? c. Assuming the farmer still only has 4 units of land, how much extra output does he get from adding 1 extra unit of labor if he is already using only 1 unit of labor? How much extra output does he get from adding 1 extra unit of labor if he is already using 4 units of labor?…
Suppose Clancy is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is______ per day. Now, suppose Clancy is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is _______ per day. From the previous analysis, you can determine that as Clancy increases his production of boats, his opportunity cost of producing one more boat ___________ . Suppose Clancy buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Clancy's opportunity cost of producing kites is higher than or lower than it was previously.
You have only 20 hours per week to use for either study time or fun time. Suppose the relationship between study time, fun time, and grades is shown in this table: bartelby learn Fun time (hours per week) 20 18 14 8 0 Study time (hours per week) 0 2 6 12 20 Grade point average 0 1.0 2.0 3.0 4.0 a. Draw the (linear) production possibilities curve on the graph below that represents the alternative uses of your time. b. On the same graph, show the combination of study time and fun time that would get you a 2.0 grade point average. c. What is the cost, in lost fun time, of raising your grade point average from 2.0 to 3.0? ________hours of fun time d. What is the opportunity cost of increasing your grade point average from 3.0 to 4.0? ___________hours of fun time
Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function Q=F(L,K) Q=10L^0.25 K^0.25 where L is their number of workers and K is units of capital. The wage rate is $500 per week and a unit of capital costs $500 per week. Suppose that when initially producing 10 square feet a week, they use 1 unit of capital.a. What is their short-run cost of remodeling 80 square feet per week? Instructions: Round your answer to the nearest whole number. $ b. What is their short-run average cost of remodeling 80 square feet per week? Instructions: Round your answer to the nearest whole number. $ c. What is their long-run cost of remodeling 80 square feet per week? Instructions: Round your answer to the nearest whole number. $ d. What is their long-run average cost of remodeling 80 square feet per week? Instructions: Round your answer…
Joey operates a lemonade stand. His cost of the lemons, sugar, and water per 8 oz. glass is $0.15. Joey's fixed cost is $180. Joey sells five glasses of lemonade per hour that he operates. a. When he was eight years old, Joey had a near zero opportunity cost of time. As a result, his total cost function C(g) was given by V. His marginal cost function (MC(g) was His shutdown price was $ b. Joey has aged and is now 17. If he were not selling lemonade, he would be working six hours per day at $6 per hour; and then would be spending the remainder of the day with his friends. Joey's total value of the time he spends with his friends, t, is 6t + t?. Joey's total cost function C(g) is now given by: St+ O B. 180 +1.35g, if q s 30 OA. 180+0.15g+ 6x ,if q s 30 5 (g-30), (4-30 5 216 – 1.05g+0.04g', if q > 30 180+36+0.15q +6x- if q > 30 OC. Both A and B; they are equivalent. O D. Neither A or B. Joey's marginal cost function, MC(g) is now O A. (1.35, if q 30 (-1.05+0.04g, if q > 30 OC. Both A and…
Production possibilities for two producers and merchants, Eric and Stan, are shown in the table below. Suppose both Eric and Stan are initially independent producers. Eric is producing 160 loaves of bread and 20 logs of wood. Stan is producing 120 logs of wood and 30 loaves of bread. Eric's Production Possibilities (monthly) Bread (loaves) Wood (logs) Stan's Production Possibilities (monthly) Bread (loaves) Wood (logs) 200 0 150 0 160 20 120 30 120 40 90 60 80 60 60 90 40 0 80 100 30 0 120 150 Eric and Stan are considering an arrangement of specialization and trade. If they specialize according to comparative advantage and agree on a trade of 30 loaves of bread for 20 logs of wood, then OA. Eric will have the same number of loaves of bread, but he will have more logs of wood. OB. Stan will have the same number of logs of wood, but he will have more loaves of bread. OC. Stan will produce 150 logs of wood, keep 130, and trade 20 to Eric in exchange for 30 loaves of bread. OD. Eric will…
You can think of the result in any one game as being Hilary’s marginal free-throw percentage. Based on your previous answer, you can deduce that when Hilary’s marginal free-throw percentage is below the average, the average must be (falling/rising). You can now apply this analysis to production costs. For a U-shaped average total cost (ATC) curve, when the marginal cost curve is below the average total cost curve, the average total cost must be (falling/rising) . Also, when the marginal cost curve is above the average total cost curve, the average total cost must be (falling/rising). Therefore, the marginal cost curve intersects the average total cost curve (at its maximum/at its minimun/when the ATC is at 0).
Suppose Kevin is currently using combination D, producing one train per day. His opportunity cost of producing a second train per day is_____per day. Now, suppose Kevin is currently using combination C, producing two trains per day. His opportunity cost of producing a third train per day is_____per day. From the previous analysis, you can determine that as Kevin increases his production of trains, his opportunity cost of producing one more train_____. Suppose Kevin buys a new tool that enables him to produce twice as many trains per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more trains per hour, Kevin's opportunity cost of producing kites is_______it was previously.
Alice and Bob each produce haircuts and landscaping services. Alice can provide 4 haircuts in one hour. Bob can provide 2 haircuts in one hour. It takes Alice 2 hours to landscape an acre of property. It takes Bob 1 hour to landscape an acre of property. Assume Alice and Bob both work a standard 8 hour day. If Alice and Bob were to combine forces and open their business "Heads and Hedges" together, how should Alice and Bob allocate their time to maximize the gains from trade with one another? (check all that apply) Alice should only spend her time cutting hair. Bob should only spend his time cutting hair. Bob should only spend his time landscaping. Alice should only spend her time landscaping.
A company that produces brass hardware for doors has the ability to produce up to 6,500 hinges per week but then is unable to produce doorknobs. Or it can produce up to 650 doorknobs per week but then is unable to produce any hinges. In the graph below, use the straight-line tool to draw the company's production possibilities frontier, where the quantities are per week (do not use the point tool to plot endpoints). Then use the point tool to plot a point to indicate the company's maximum output where it is producing exactly three times as many hinges as doorknobs. To refer to the graphing tutorial for this question type, please click here. Quartity ofinge 000 7500 000 4000 000 100 1000 Quartity of doorknot