Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 18, Problem 4PA
Subpart (a):
To determine
To calculate:
Subpart (b):
To determine
To calculate: Price in the perfect competitive market.
Subpart (c):
To determine
To calculate: The marginal product and the value of marginal product.
Subpart (d):
To determine
To calculate: The marginal product and the value of marginal product.
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There are big efficient farms in Brazil that use lots of machinery competing against many small farmers with fewer resources. For this discussion, use what you've learned about me saying product and costs to discuss why big farms are driving market supply for green coffee beans and why some of the things being done tk support little farms might work. What do you think the cost curves for a big farm look like vs. for a small independent farm. In the short run, would big the big farm have more labor? Would the types of calital be different between the two?
Question 1.A
Complete the following table and what production technique should this firm use:
Assuming the price of capital (k) is $5 and the price of labor (L) is $10, and the price of commodity (Q) is $3.
Technique
Q
L
K
TR
TC
Profit(π)
A
50
10
6
B
50
9
8
C
50
5
10
D
50
12
8
E
50
2
10
F
50
7
12
please answer a, b, c, and d
Chapter 18 Solutions
Principles of Economics (MindTap Course List)
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