MICROECONOMICS-ACCESS CARD <CUSTOM>
11th Edition
ISBN: 9781266285097
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 3QE
(a)
To determine
Explain if it is possible to be technically efficient or not.
(b)
To determine
Explain if both methods are possible to be economically efficient or not.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A dressmaker can sew 800 garments with 160 bolts of fabric and 3,000 hours of labor. Another dressmaker can sew 800 garments with 200 bolts of frabic and 2,000 hours of identical labor. Frabric cost $80 a bolt and labor cost $10 an hour. a.) is it possible for both methods to be techically efficient? why or why not? b.) is it possible for both methods to be economically efficient? why or why not?
How does a cost behave in response to a change in activity? Give an example?
Consider the marginal cost curve associated with cleaning your dorm room. Label the vertical axis “time” and the horizontal axis “percent clean.” What would this marginal cost curve look like?
Chapter 12 Solutions
MICROECONOMICS-ACCESS CARD <CUSTOM>
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
Knowledge Booster
Similar questions
- Explain how a decrease in input prices or an increase in efficiency would affect costs.arrow_forwarda.)Suppose that labor is the only variable input in the production process. If the marginal cost of production is diminishing as more units of output are produced, what can you say about the marginal product of labor?b.)What are economies of scale? What are economies of scope? What is the difference between the two?arrow_forwardAt what level of production does the marginal cost have the least value? What is the marginal cost at this level of production?arrow_forward
- When thinking about cost analysis in Microeconomics, what are the real-world problems that occur when applying theories of scale? Describe and give an example of each.arrow_forwardYou produce widgets. Currently you produce four widgets at a total cost of $40. What is your average total cost? Suppose you could produce one more (the fifth) widget at a marginal cost of $5. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why? Suppose instead that you could produce one more (the fifth) widget at a marginal cost of $20. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why?arrow_forwardWhat is optimization? How does it blow up the myth about profit being a result of a mere increasedecrease interplay between cost and revenue? How much should a firm sell of a particular product in order to maximize profit? What factor does it have to consider in arriving at this decision?arrow_forward
- Imagine that a pizzeria has a small pizza oven, "Oven 1". In the immediate future, they must use this oven in order to make pizzas. However, in one year's time, they have the option to upgrade to "Oven 2". The table below displays the average total cost of producing a given quantity of pizzas using each oven. | Number of Pizzas Oven 1 Average Total Cost Oven 2 Average Total Cost 100 200 $5 $4 $5 $6 $7 $7 $5.50 $4 $2.50 $4 300 400 500 In the short run, the average total cost of producing 200 pizzas is $ A In the long run, the average total cost of producing 200 pizzas is $ A . In the long run, it makes sense for this particular pizzeria to use Oven A if they plan on producing 200 pizzas.arrow_forwardSarah's copy shop can use four alternative plants. The figure shows the average total cost curves for Plant 1 (ATG), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATCA). What is Sarah's long-run average cost if the output is 3,000 copies per day? 10 ATC ATC ATC, ATCA 6 10 Quantity (thousands of copies per day) Select one: O a. 3.7 cents per copy 8.5 cents per copy c More information is needed to determine the long-run average cost O d.5.0 cents per copy Average cost (cents per copy)arrow_forwardExplain why videos that cost $50 to $200 million, such as those produced by Pixar, cost as little as $20 to $30 to purchase while educational videos that cost less than one million to produce sell for $500 to $1,000 each.arrow_forward
- True/False: Ryan has coffee shop. If the marginal cost of producing the tenth cup of coffee is $1.50, and if the average total cost of producing the nine cups of coffee is $2, then find the average total cost of producing the ten cups of coffee. Show your work.arrow_forwardWhat are two examples of variable costs?arrow_forwardJoanne sells silk screened T-shirts at community festivals and craft fairs. Her marginal cost to produce one T-shirt is $3.50. Her total cost to produce 70 T-shirts is $305, and she sells them for $7 each a. Find the linear cost function for Joanne's T-shirt production b. How many T-shirts must she produce and sell in order to break even? c. How many T-shirts must she produce and sell to make a profit of $700? a. The linear cost function is C(x)= b. Joanne must produce and sell c. Joanine must produce and sell T-shirts in order to break even, because the number of T-shirts must be a whole number T-shirts to make a profit of $700, because the number of T-shirts must be a whole numberarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
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