Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 9, Problem 9WNG
To determine
Explain the reason for firm’s marginal cost curve is cut the lowest point of
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if the ATC curve is rising, does that mean the MC curve must lie above it? Explain.
true or false. please explain why.
What is meant by an expansion path? Illustrate expansion paths for a normal input and an inferior input.
Chapter 9 Solutions
Microeconomics
Ch. 9.1 - Prob. 1STCh. 9.1 - Prob. 2STCh. 9.1 - Prob. 3STCh. 9.1 - Prob. 4STCh. 9.2 - Prob. 1STCh. 9.2 - Prob. 2STCh. 9.2 - Prob. 3STCh. 9.2 - Prob. 4STCh. 9.3 - Prob. 1STCh. 9.3 - Prob. 2ST
Ch. 9.3 - Prob. 3STCh. 9.3 - Prob. 4STCh. 9.4 - Prob. 1STCh. 9.4 - Prob. 2STCh. 9 - Prob. 1QPCh. 9 - Prob. 2QPCh. 9 - Prob. 3QPCh. 9 - Prob. 4QPCh. 9 - Prob. 5QPCh. 9 - Prob. 6QPCh. 9 - Prob. 7QPCh. 9 - Prob. 8QPCh. 9 - Prob. 9QPCh. 9 - Prob. 10QPCh. 9 - Prob. 11QPCh. 9 - Prob. 12QPCh. 9 - Prob. 13QPCh. 9 - Prob. 14QPCh. 9 - Prob. 15QPCh. 9 - Many plumbers charge the same price for coming to...Ch. 9 - Prob. 17QPCh. 9 - Prob. 18QPCh. 9 - Prob. 1WNGCh. 9 - Prob. 2WNGCh. 9 - According to the accompanying table, what quantity...Ch. 9 - Prob. 4WNGCh. 9 - Prob. 5WNGCh. 9 - Prob. 6WNGCh. 9 - Prob. 7WNGCh. 9 - Prob. 8WNGCh. 9 - Prob. 9WNGCh. 9 - Prob. 10WNG
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- What is sunk cost? Provide an example of a sunk cost.Why are such costs irrelevant in making decision about future actions?arrow_forwardWhat is sunk cost? Provide an example of a sunk cost. Why are such costs irrelevant in making decision about future actions?arrow_forwardCreate graph and answer questionsarrow_forward
- In 50 words, answer the following question: In the class, we know the reason why the MC curve intersects the ATC curve at the minimum level of ATC. Actually, MC curve also intersects the AVC curve at the minimum level of AVC. Is it a coincidence? What make the similarity? (Hint: How MC affect the change in ATC? Does it the same for AVC?)arrow_forwardcomplete the tablearrow_forwardhow do i find the slope of C?arrow_forward
- The production of Hyundai has a function of Q=(L12+K12)2 a. Do the inputs exhibit diminishing marginal returns? b. Get the cross partials and check if they are equal.arrow_forwardQuestion # 1: Majeda wrote the following answer on her microeconomics examination: “Virtually every production function exhibit diminishing returns to scale because my professor said that all inputs have diminishing marginal productivities. So, when all inputs are doubled, output must be less than double." How would you grade Majeda's answer? Question # 2: Suppose a firm had a production function with linear isoquants, implying that its two inputs were perfect substitutes for each other. What would determine the firm's expansion path in this case? For the opposite case of a fixed-portions production function, what would the firm's expansion path be? Question # 3: Suppose that a firm's production function is q = 30√L. In the short run, where there are fixed costs of $2,200, and labor is the variable input whose cost is $6,300 per units. What is the total cost of producing 20 units of output?arrow_forwardGiven that TC=2000+100Q-10Q2+Q3 where Q is level of output and maximum level of MP is 15 units, answer the following question based on the given information. A. Determine the TFC ,TVC,AVC,AFC,AC and MC functions b. Calculate the level of output at which AVC and AC reaches its minimum c Draw the relationship between production and cost curve and What relationship do you observe between production and cost curves? Why is this so? G At 5 units AVC,APL is 10,what is the maximum APL?arrow_forward
- please answer the following question with work shown thanks!arrow_forwardWhat is a negative feedback loop? Give an example of a negative feedback loop within the real estate system shown in Exhibit 2-2.arrow_forward4. What if the production function for education (E) is: E=T06 B08, where T is teachers and B is buildings and materials. The cost of each teacher is $54, the material cost $144 per unit and the school has a budget of $5,000 (numbers are in ,000, but this can be ignored) a. Construct the isocost equation. b. With a MPT = 0.6T04B0.8 and MPB = 0.8T06B-02, determine the appropriate input mix to get the greatest output. Also, compute output. c. Explain what would happen in the short-run (keeping capital fixed) to the appropriate input mix if the budget where changed to $4,250. Would the input combination be different in the long-run? If so, how would it change? Explain.arrow_forward
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