Yvette makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 70 sweaters per year. Now some localstores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital;in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Yvette'ssweater business is a perfectly competitive firm.Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom.Quantity of InputMPP of Each Loom MRP of Each Loom(Sweaters)(Dollars)(Looms)Output(Sweaters per year)70130181226265301If the rental price of a loom is $420 per year, Yvette should useSuppose the demand for sweaters is very elastic, while the demand for cigarettes is very inelastic.Suppose that looms are used exclusively in the production of sweaters and that tobacco is used exclusively in the production of cigarettes. Which ofthe following might we expect?O The supply of tobacco would be more elastic than the supply of looms.O The demand for tobacco would be less elastic than the demand for looms,The demand for tobacco would be more elastic than the demand for looms.The supply of tobacco would be lesa efastic than the supply of fooms.

Marginal Price Product (MPP) refers to the change in the total revenue a firm receives when it…

Yvette makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 70 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Yvette's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom Quantity of Input (Looms) MPP of Each Loom (Sweaters) MRP of Each Loom (Dollars) Output (Sweaters per year) 70 130 181 226 265 301 If the rental price of a loom is $420 per year, Yvette should use Suppose the demand for sweaters is very elastic, while the demand for digarettes is very inelastic.

Yvette makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 70 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Yvette's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom Quantity of Input (Looms) MPP of Each Loom (Sweaters) MRP of Each Loom (Dollars) Output (Sweaters per year) 70 130 181 226 265 301 If the rental price of a loom is $420 per year, Yvette should use Suppose the demand for sweaters is very elastic, while the demand for digarettes is very inelastic.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Farmer Jack is a well-established farmer who owns two plots of land. He refers to his fields of land by names. One field/plot of land is called Gator Plot, and the other one is called Brown Plot. As a farmer, Jack produces Cotton and Grains. Gator plot has a total of 80 acres of land, and in this field, it takes 10 acres to produce 1 unit of Cotton and 20 acres to produce 1 unit of Grains. On the other hand, Brown Plot has 100 acres of land. In this field, it takes 20 acres to produce 1 unit of Cotton and 10 acres to produce 1 unit of Grains. However, because Jack has been farming for a while now, he is worried about overharvesting COTTON because if he harvests too much Cotton, then the land will become barren. Consequently, there is a quantity restriction on Cotton and only Cotton. The restriction is outlined as follows: FIRST, there is a quantity restriction of 4 Cotton in Gator Plot. This means that Gator Plot is allowed to produce a maximum of 4 units of Cotton. SECOND, there is a…
definition of economic costs