MACROECONOMICS IN MODULES
5th Edition
ISBN: 9781319245368
Author: KRUGMAN
Publisher: MAC HIGHER
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Question
Chapter 2, Problem 1QFT
To determine
The
Concept Introduction:
Opportunity Cost: It is the cost of next best alternative that is foregone in order to pursue one course of action. It refers to the benefits which are given up in the process of obtaining some other benefits.
Expert Solution & Answer
Explanation of Solution
- In the above case,the time spent in search of tools could have been used by workers to finish their assigned tasks.
- The B Company used assembly line method of production in which products were moved from one assembly line to other at a steady rate. This eliminated the need of workers to wander and saved time to work.
- The amount of work left unfinished due to time spent in search of tools is the opportunity cost of roaming around and searching for tools.
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Tasks
Exercise 1
Assess the following functions:
1. f(x)= x2+6x+2
2.f '(x)=10x-2x2+5
a. Find the stationary points. (5 marks)
b. Determine whether the stationary point is a maximum or minimum. (5 marks)
c. Draw the corresponding curves (5 marks)
Problem 2:
The sales data over the last 10 years for the Acme Hardware Store are as follows:
2003
$230,000
2008
$526,000
2004
276,000
2009
605,000
2005
328,000
2010
690,000
2006
388,000
2011
779,000
2007
453,000
2012
873,000
1. Calculate the compound growth rate for the period of 2003 to 2012.
2. Based on your answer to part a, forecast sales for both 2013 and 2014.
3. Now calculate the compound growth rate for the period of 2007 to 2012.
1. Based on your answer to part e, forecast sales for both 2013 and 2014.
5. What is the major reason for the differences in your answers to parts b and d? If you were to
make your own projections, what would you forecast? (Drawing a graph is very helpful.)
Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36
Q
Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.
Chapter 2 Solutions
MACROECONOMICS IN MODULES
Ch. 2.A - Prob. 1PCh. 2.A - Prob. 2PCh. 2.A - Prob. 3PCh. 2.A - Prob. 4PCh. 2.A - Prob. 5PCh. 2.A - Prob. 6PCh. 2.A - Prob. 7PCh. 2.A - Prob. 8PCh. 2.A - Prob. 9PCh. 2.A - Prob. 10P
Ch. 2 - Prob. 1QFTCh. 2 - Prob. 2QFTCh. 2 - Prob. 3QFTCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16P
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