MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Chapter 12, Problem 2QE
(a)
To determine
Explain whether both methods could be technically efficient.
(b)
To determine
Explain real-life consequences of the poll tax.
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Think about several different types of industries or markets and the amount of time it might take to change the scale of operation and the size of the production facility for each of these examples. The long-run is a period of time long enough so that all inputs, including facility and equipment, are variable, while in the short run at least one input is fixed. Think about how much time it would take to change the scale of operation for a restaurant, for an automobile plant, for a website designing company... Does it seem that the amount of time that separates the long run from the short run is industry-specific, rather than a set period of time? Share three specific examples.
Describe in detail how Diminishing Marginal Product arises from the assumption that some of a business's inputs are in fixed quantity over the period of time that is the short run. Often the convention is to assume that the business's production facility and the capital stock within it are the fixed factors of…
Where average costs of production are lowest when all output is produced by a single firm.
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Chapter 12 Solutions
MICROECONOMICS
Ch. 12.1 - Prob. 1QCh. 12.1 - Prob. 2QCh. 12.1 - Prob. 3QCh. 12.1 - Prob. 4QCh. 12.1 - Prob. 5QCh. 12.1 - Prob. 6QCh. 12.1 - Prob. 7QCh. 12.1 - Prob. 8QCh. 12.1 - Prob. 9QCh. 12.1 - Prob. 10Q
Ch. 12.A - Prob. 1QECh. 12.A - Prob. 2QECh. 12.A - Prob. 3QECh. 12.A - Prob. 4QECh. 12.A - Prob. 5QECh. 12.A - Prob. 6QECh. 12.A - Prob. 7QECh. 12 - Prob. 1QECh. 12 - Prob. 2QECh. 12 - Prob. 3QECh. 12 - Prob. 4QECh. 12 - Prob. 5QECh. 12 - Prob. 6QECh. 12 - Prob. 7QECh. 12 - Prob. 8QECh. 12 - Prob. 9QECh. 12 - Prob. 10QECh. 12 - Prob. 11QECh. 12 - Prob. 12QECh. 12 - Prob. 13QECh. 12 - Prob. 14QECh. 12 - Prob. 15QECh. 12 - Prob. 16QECh. 12 - Prob. 17QECh. 12 - Prob. 1QAPCh. 12 - Prob. 2QAPCh. 12 - Prob. 3QAPCh. 12 - Prob. 4QAPCh. 12 - Prob. 5QAPCh. 12 - Prob. 1IPCh. 12 - Prob. 2IPCh. 12 - Prob. 3IPCh. 12 - Prob. 4IPCh. 12 - Prob. 5IPCh. 12 - Prob. 6IP
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- Distinguish between the short-run and long-run production decisions and illustrate their impact on cost and economies of scale.arrow_forwardThese questions come from this article about the Honeycrisp apple (Links to an external site.). (It really is a fantastic apple!) I have a feeling you guys may not love this assignment either but try to think carefully about these things. It's harder than it looks. I'm not gonna grade your answers for their length so try to keep them to the point. If you don't know the answer to something, don't write a long rambling paragraph full of econ-sounding words hoping I will give you partial credit. I won't. Just skip it (or better yet, think about it until you DO know the answer....) 1. The article poses the question: "So why do farmers put up with the hassle?" And then answers it: "They simply don’t have a choice. The demand for this one apple exceeds supply—it’s all consumers, and therefore supermarkets, want." Do growers, in fact, have a choice here? If so, why would they CHOOSE to grow Honeycrisp when it is more difficult and expensive than other varieties? What could…arrow_forwardA firm produces identical outputs at two different plants. If the marginal cost at the first plant exceeds the marginal cost at the second plant, how can the firm reduce costs while maintaining the same level of overall output? Explain.arrow_forward
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