20New PPC1510347.TRUCKS PER DAYSuppose Raphael is currently using combination D, producing one truck per day. His opportunity cost of producing a second truck per day isper day.Now, suppose Raphael is currently using combination C, producing two trucks per day. His opportunity cost of producing a third truck per day isper day.From the previous analysis, you can determine that as Raphael increases his production of trucks, his opportunity cost of producing one more truckSuppose Raphael buys a new tool that allows him to produce twice as many trucks per hour as before but doesn't affect his ability to produce puzzles.Use the green points (triangle symbol) to plot his new PPC on the previous graph.Because he can now make more trucks per hour, Raphael's opportunity cost of producing puzzles isit was previously.PUZZLES PER DAY 1. Opportunity cost and production possibilitiesRaphael is a skilled toymaker vho is able to produce both trucks and puzzles. He has 8 hours a day to produce toys. The following table shows thedaily output resulting from various possible combinations of his time.Hours ProducingProducedChoice (Trucks) (Puzzles) (Trucks) (Puzzles)A4B62344213D6116E817On the following graph, use the blue points (circle symbol) to plot Raphael's initial production possibilities curve (PPC).3025Initial PPCA20New PPC15ES PER DAY

Hours Producing Produced Choice Trucks Puzzles Trucks Puzzles A 8 0 4 0 B 6 2 3 9 C 4 4 2…

Answered: Suppose Raphael is currently using…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose pizzerias and sushi bars experience roughly the same economies of scale, with a common minimum market size of 200,000 meals per year. The per- capita demand for pizza is 20 meals per year and the per-capita demand for sushi is 4 meals per year. Suppose you move from a city with a population of 20,000 to a city with a population of 60,000. a. The number of pizzerias will change from [_____] to [_____] b. The number of sushi restaurants will change from [_____] to [_____] Illustrate the initial conditions for both pizzerias and sushi bar in a graph
Assume an economy producing only two goods (shoes and computers) with a fixed amount ofproductive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions: Mention three (3) conditions under which the sacrifice ratio between the goods will bezero.
.ll alfa ? 8:48 am TVC TC AVC MC 15 1 23 12 4 3 30 Answer the following questions: 1- What is the total fixed cost (TFC) of producing 2 tables? * а. О b. 15 О с. 27 d. 12 2- What is the average total cost (ATC) of producing 2 tables? * a. 27
For the annual school bazaar, Emmy can produce and sell either origami frogs (F) or birds (B). For his origami he needs to work with sheets of paper, glue, and paper clips. Below table shows how many units of each input factor is needed to produce one origami. It also shows the total amount of input units available. Emmy’s profits per origami bird and frog are =1 and =2, respectively. 1:Which formula describes the sheets of paper constraint? a F <= 5 b F <= 6-2/3B c B <= 5 d F <=7-1B 2: Which formula describes the glue constraint? a F <=7-1B b F <= 5 c B <= 5 d F <= 6-2/3B 3: Which formula describes the paper clips constraint? a B <= 5 b F <=7-1B c F <= 6-2/3B d F <= 5 4: The iso-profit line has a slope of negative a…
Eddie Guitars 32 28 24 20 16 12 8 4 0 Tubas 0 1 2 3 4 5 6 7 8 Dave Guitars 25 20 15 10 5 0 Tubas 0 1 2 3 4 5 35 30 25 20 15 10 5 0 30 25 20 15 10 5 0 0 0 2 1 2 4 3 6 4 8 5 10 6 Eddie and Dave both produce guitars and tubas. They produce a given amount of each per month as seen in the tables above. Given the production possibilities curves of each individual above, answer the following: Who has the comparative advantage in the production of tubas? Eddie, because his opportunity cost of producing a tuba is 0.75 guitars tubas compared to Dave's opportunity cost of producing a tuba guitar of 0.25 guitars Dave, because his opportunity cost of producing a tubas is 5 guitars compared to Eddie's opportunity cost of producing a tuba of 4 guitars Dave, because he is able to produce a lower number of tubas compared to Eddie Dave, because he is able to produce a lower number of guitars compared to Eddie Eddie, because his opportunity cost of producing a tuba is 4 guitars compared to Dave's…
Monique has a flock of six chickens in her backyard that she initially bought for $6 each. Theflock currently lays 20 eggs per week, which Monique and her family consume at home, andher current cost of feed is $2 per week. Monique has a job that pays $8/hour with flexiblehours, but she is thinking of selling her chickens’ eggs to earn extra income. To start sellingeggs, she would need to increase production to 30 eggs per week. She can do this by increasingthe chickens’ feed to $3 per week and taking an hour off work each week to devote to chickenrearing. If the market price of her farm-fresh eggs is $1 per egg, what would be Monique’sweekly economic profits from selling her chickens’ eggs? (Select one from below) (a) −$9: This is her revenue minus her accounting cost.(b) −$1: This is her revenue minus her production cost.(c) $0: Eggs are a constant-cost market so producers must earn 0 profits.(d) $1: This is her revenue minus her economic cost.(e) $7: This is her revenue minus her…
What is a diseconomy of scale and what is an economy of scale? What modifications would you make to your current home gardening production if you intended to achieve economies of scale? Clarify why
Consider three firms, A, B and C, all producing kilos of potatoes (per year). The diagrams for the marginal cost curves for each of the three firms are shown. Suppose that the total quantity for the market is 1200 kilos of potatoes. Keeping total output unchanged, what level of output should each firm be producing such that the industry is productively efficient? Assume all the points are on the marginal cost curve. O A. Firm A: 400 kilos, Firm B: 400 kilos, Firm C: 400 kilos B. Firm A: 550 kilos, Firm B: 650 kilos, Firm C: 0 kilos O C. Firm A: 150 kilos, Firm B: 400 kilos, Firm C: 650 kilos O D. FirmA: 400 kilos, Firm B: 400 kilos, Firm C: 150 kilos O E. Firm A: 400 kilos, Firm B: 650 kilos, Firm C: 150 kilos Cost ($) Cost ($) Cost ($) 2+ 2+ 150 150 Firm A 400 Quantity of potatoes Firm B 550 400 Quantity of potatoes Firm C 400 Quantity of potatoes 650 650 MCA MC₂ 750 MCC Q ✓ ON Q Q
Two children living in a neighborhood have decided to go into business running lemonade stands. Annie has spent$10on a pitcher to make the lemonade in, and can produce up to 70 cups of lemonade per day. She spends$0.15per cup of lemonade on lemons, sugar, and plastic cups. Bobby has spent$1on a pitcher, and can produce only 20 cups of lemonade per day. He spends$0.25per cup of lemonade on lemons, sugar, and plastic cups. Which of the following graphs represents the supply curve for lemonade in this neighborhood? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
8.8
Theo sells baby rattles at $3 per unit and each month he sells 3,000 units out of the back of his wagon in the city park. Theo has no employees and estimates he could rent his wagon to another entrepreneur for $2,000 eachmonth. He also knows that he could earn about $5,000 a month as a model. He pays $1 per unit for plastic, his only raw material. Question: Should Theo continue to sell his baby rattles in the park? Explain
In this week’s journal entry, you are asked to reflect on the concept of economies of scale. There are many ways to define economies of scale, but the most straightforward explanation is as follows: The more you make of something, the less it costs. Walmart is truly a behemoth in the retail industry; aside from Amazon, there are few competitors that have become such dominant forces in the marketplace. How might economies of scale pose a threat to existing smaller competitors? Look around your own community. Has Walmart had an impact on smaller businesses in your area? https://sway.office.com/yw6F8tEDRmKwGA6G?ref=Link

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS