The effect on PPF for Wheat and cloth if the supply of capital falls by 10% and the supply of labor increases by 10%. Concept Introduction: The resources in the economy are scarce for the individuals as well as the economy as a whole, so it becomes important to use these resources efficiently in the production of goods and services. Efficiency in use of resources is getting the most of the available resources. The production possibility frontier is different combinations of goods that can be produced with most efficient use of resources. This means that it is a combination of goods which are between inefficient goods and unattainable goods. The production possibilities frontier curve serves as a boundary between inefficient goods and unattainable goods. If there is a change in the resources that affects both the goods on the production possibilities frontier curve, it will shift parallel to the original curve. However, if the change in resources only affects one of the products, it will bring about a change or movement along the PPF curve.

Question

Fems A and B are duopolist producers of widgets. The cost function for producing widgets C(Q)-Q² The market demand function for widgets i Q-192P Qmeasures thousands of widgets per year, Competition in the widget market is described by the Coumot model Instructions: Round your answers to 2 decimal places a What are the firms' Nanh equbrium output? b. What is the resulting price? c. What do they each emp How does the price compare to marginal cost? Price is ck to marginal cost How do the price and the two fems' joint profit compare to the monopoly price and prof Compared to the monopoly price, the Cournot price is to sed. Compared to the monopoly profit, the joint profit of the two fems to select

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Chapter 2, Problem 3.6P

To determine

The effect on PPF for Wheat and cloth if the supply of capital falls by 10% and the supply of labor increases by 10%.

Concept Introduction:

The resources in the economy are scarce for the individuals as well as the economy as a whole, so it becomes important to use these resources efficiently in the production of goods and services. Efficiency in use of resources is getting the most of the available resources. The production possibility frontier is different combinations of goods that can be produced with most efficient use of resources. This means that it is a combination of goods which are between inefficient goods and unattainable goods. The production possibilities frontier curve serves as a boundary between inefficient goods and unattainable goods.

If there is a change in the resources that affects both the goods on the production possibilities frontier curve, it will shift parallel to the original curve. However, if the change in resources only affects one of the products, it will bring about a change or movement along the PPF curve.

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Fems A and B are duopolist producers of widgets. The cost function for producing widgets C(Q)-Q² The market demand function for widgets i Q-192P Qmeasures thousands of widgets per year, Competition in the widget market is described by the Coumot model Instructions: Round your answers to 2 decimal places a What are the firms' Nanh equbrium output? b. What is the resulting price? c. What do they each emp How does the price compare to marginal cost? Price is ck to marginal cost How do the price and the two fems' joint profit compare to the monopoly price and prof Compared to the monopoly price, the Cournot price is to sed. Compared to the monopoly profit, the joint profit of the two fems to select

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