Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 19, Problem 2RQ
To determine
Whether the economy should select the coal powered or gas powered generator for electricity needs.
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Number of
Mean Raw Processing
Capacity (Jobs per Bottleneck? (Yes
day)
Station
Parallel Machines
Time
or No)
Installed
#1
5 hours
#2
15+0.5- 2 hours
#3
183 hours
What is the whole factory's capacity (aka. bottleneck rate) in "jobs per day?
O 144 jobs per day
12 jobs per day
O 13.11 jobs per day
O 48 jobs per day
Number of
Parallel Machines
Installed
Capacity (Jobs per Bottleneck? (Yes:
day)
Mean Raw Processing
Station
Time
or No)
#1
5 hours
4.
#2
1.5+0.5-2 hours
2
#3
1.83 hours
f demand rate is 9.6 jobs per day, what is the capacity utilization at the bottleneck?
O 38%
O SON
O 100%
O 40%
O O 971 5:39
Total Cost
Output
(Units)
($)
50
10
120
20
170
30
210
40
260
50
330
60
430
Total costs include a "normal" return on the time (labor services) and capital that the owner
has invested in the firm. The prevailing market price is $7 per unit.
(a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.
(b) What is the firm's profit maximizing output level?
Is the industry in long-run equilibrium? Justify your answer.
Output Total Fixed Cost Total Variable Cost
$9
$0
1
$9
$5
$8
$9
$9
$10
4
$9
$11
$9
$12
_dollars.
The marginal cost of producing the 3rd unit of output is
O 9
O 19
O 2
O 10
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3.
5.
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