Zoe is trying to decide how to divide her time between her job as a wedding photographer,which pays $22 per hour for as many hours as she chooses to work, and as a fossil collector, inwhich her pay depends on both the price of fossils and the number of fossils she finds.Earnings aside, Zoe is indifferent between the two tasks, and the number of fossils she can finddepends on the number of hours a day she searches, as shown in the table below:a. Using this information, compute the lowest price that Zoe would accept per fossil in order tojustify her spending more time collecting fossils and less time working as a weddingphotographer.Instructions: Complete the table below. Enter your responses rounded to the nearest penny(two decimal places).Hours Total fossilsper dayper dayLowest price Zoewould accept perfossil1622 ✗211$14.73☑3159.47×418$6.22✗5204.40☑b. The relationship between the lowest price and the number of fossils collected is called thedemand curve

The relationship between the lowest price and the number of fossils collected is called the supply…

Answered: Zoe is trying to decide how to divide…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Zoe is trying to decide how to divide her time between her job as a wedding photographer, which pays $32 per hour for as many hours as she chooses to work, and as a fossil collector, in which her pay depends on both the price of fossils and the number of fossils she finds. Earnings aside, Zoe is indifferent between the two tasks, and the number of fossils she can find depends on the number of hours a day she searches, as shown in the table below: a. Using this information, compute the lowest price that Zoe would accept per fossil in order to justify her spending more time collecting fossils and less time working as a wedding photographer. Instructions: Complete the table below. Enter your responses rounded to two decimal places. Total fossils Lowest price Zoe would accept per Hours per day per day fossil 11 15 4 18 5 20 2$
1. Zoe is trying to decide how to divide her time between her job as a wedding photographer, which pays $60 per hour for as many hours as she chooses to work, and as a rock collector, in which case her pay depends both on the price of the rocks and the number of them she finds. These are special rocks so they have value! Earnings aside, Zoe is indifferent between the two jobs. The number of rocks she can expect to find depends on the number of hours she searches: Hours per day Total rocks per day 0 0 1 7 2 13 3 17 4 20 5 21 The marginal cost of spending one hour hunting for rocks is $ . If the price per rock is $20 then the marginal benefit of spending one hour hunting for rocks is $ . If the price per rock is $20, she will spend at most hours hunting for rocks. If the price per rock falls to $10 then she will spend at most hours hunting for rocks.
Prunella raises peaches where L is the number of units of labor she uses and T is the number of units of land she uses. Her output is f(L,T) = LT bushels of peaches. Currently, the cost of land is 8, the wage for labor is 9, and the price of peaches is 10. Prunella is currently maximizing her profits. Which occurences would cause the quantity of labor used to decrease? O An increase in the price of peaches O A increase in the price of labor O An increase in the Marginal Product of Labor O All of the above
Becky currently earns anominal wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Becky'sreal wage, in terms of the amount of milk she can buy with her paycheck, is gallons of milk per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's wage is than both the worker and employer expected when they agreed to the wage. Becky and her employer both expected inflation to be 3% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.36 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 6%, not 3%. For example,…
Country Denali Congaree Suppose that initially Denali uses 1 million hours of labor per day to produce shorts and 3 million hours per day to produce almonds, while Congaree uses 3 million hours of labor per day to produce shorts and 1 million hours per day to produce almonds. As a result, Denali produces 6 million pairs of shorts and 36 million pounds of almonds, and Congaree produces 12 million pairs of shorts and 16 million pounds of almonds. 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 shorts and almonds it produces. Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) 6 12 16 Denali's opportunity cost of producing 1 pair of shorts is of almonds. Therefore, comparative advantage in the production of almonds. 4 Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In…
Suppose Anna is considering two job offers. She can choose to either work as a barista in a cafe or a coach in a gym. The cafe is only a six-minute walk from where she lives. The gym is 45 minutes away by bus (single trip) with a daily ticket price of $5. The cafe offers her 4 shift hours per day, five days per week and pays her $20 per hour. While working at the cafe Anna can also have three cups of free coffee each week. Alternatively, the gym offers her 4 shift hours per day, four days per week and pays her $30 per hour and she can enjoy 20% discount off the gym membership. If Anna will take one and only one of the jobs, the opportunity cost of taking the barista job is $_ leisure time, plus _ 480, +1 hour, three cups of coffee ' 460, +1 hour, 20% discount off membership 460, 0 hour, 20% discount off membership 480, -1 hour, three cups of coffee
Que You have decided that you want to attend a renaissance fair as King Henry VIII. You estimate that it will cost $80 to assemble your costume. After spending $80 on the costume, you realize that the additional pieces you need will cost you $20 more. The marginal cost of completing the O $20 $80 O $60 O $100
Suppose Lorna wants to go skating at a price of R150. She estimates that the cost of driving to the ice arena and of parking will amount to R30. To go skating Lorna will have to take a day off from her part-time work as a personal assistant. She estimates that she will lose 7 hours at her wage rate of R15 an hour. Lorna's opportunity cost of skating equals...
Consider Babs and Donna, who can each produce cake, beer, or some combination of the two using only 40 hours of labor each. Babs can produce a maximum of 120 cakes if she produces no beer, and 150 units of beer if she produces no cake. Donna can produce a maximum of 40 cakes with no beer produced; if she makes no cake, she can produce 100 units of beer. In autarky, each producer spent half of her time producing cake and the other half producing beer. But now let's say that Babs and Donna decide to trade with each other. They decide that each producer will fully specialize in the good where she has comparative advantage. Later, they will work out the details on how much beer will trade for how many cakes and vice versa. Calculate the gains in trade in cakes that Babs and Donna together (as a group) will experience due to trading. In other words, tell me how many more cakes the two of them can now consume (together) by trading instead of remaining in autarky.
In the Cost Minimization Problem, the isoquant curve for an output level equal to the output quota? Illustrates the cost of labor and capital a firm pays to produce a level of output in excess of an output quota. Illustrates all combinations of labor and capital that a firm cannot afford. Illustrates all combinations of labor and capital that a firm can afford. O Illustrates all combinations of labor and capital that a firm can use to produce a level of output equal to the output quota.
According to the Wall Street Journal, Mitsubishi Motors recently announced a major restructuringplan in an attempt to reverse declining global sales. Suppose that as part of the restructuring planMitsubishi conducts an analysis of how labour and capital are used in its production process. Priorto restructuring Mitsubishi’s marginal rate of technical substitution is 0.15 ( in absolute value). Tohire workers. Suppose that Mitsubishi must pay the competitive hourly wage of US$ 15. In thestudy of production process and markets where capital is procured, suppose that Mitsubishidetermine that its marginal productivity of capital is 0.5 small cars per hour at its new targetedlevel of output and that capital is procured in a highly competitive market. The same studyindicates that the average selling price of Mitsubishi’s smallest car is US$ 9500. Determine therate at which Mitsubishi can rent capital and marginal productivity of labour at its new targetedlevel of output. To minimize costs…
1.Explain how a firm uses resources price and value data to determine the appropriate combination of capital and labor resources to use in order to maximize profits. 2.how does this change when the firm want to produce a specific quantity of product with the least cost combination of resources? 3. if a software firm estimates that the MP of labor is 3 apps per month and the price is labor is $1100 per month, while the MP of capital is 5apps per month and its price is $2000, should the firm hire more labor and decrease its capital use or increase its use of capital and use fewer labor resources?

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