Question

Use the following information to answer the questions below: Manufacturing: Sales revenue = PM. QM =...

Use the following information to answer the questions below:

Manufacturing: Sales revenue = PM. QM = 150

Payments to labor = W LM = 100

Payments to capital = RK K=50

Agriculture: Sales revenue = PA. QA = 150

Payments to labor = W LM = 50

Payments to land = RT T=100

Holding the price of computers constant, suppose the increase in the price of agriculture is 10% and the increase in the wage is 5%.

a. Determine the impact of the increase in the price of agriculture on the rental on land and the rental on capital.

b. Explain what has happened to the real rental on land and the real rental on capital.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Use the following information to answer the question. Manufacturing: Sales revenue = PM × QM =...
Use the following information to answer the question. Manufacturing: Sales revenue = PM × QM = 150 Payments to labor = W × LM = 100 Payments to capital = RK × K = 50 Agriculture: Sales revenue = PA × QA = 150 Payments to labor = W × LA = 50 Payments to land = RT × T = 100 Holding the price of manufacturing constant, suppose the price of agriculture increases by 20% and the wage increases...
Question 2 An economy is described by the specific factors model. Use the information given here...
Question 2 An economy is described by the specific factors model. Use the information given here to answer the following questions: Manufacturing: Sales revenue = PM × QM = 150 Payments to labor = W × LM = 100 Payments to capital = RK × K = 50 Agriculture: Sales revenue = PA × QA = 150 Payments to labor = W × LA = 50 Payments to land = RT × T = 100 Holding the price of agriculture...
Computers: Sales revenue = PC x QC = 150 Payments to labor = W x LC...
Computers: Sales revenue = PC x QC = 150 Payments to labor = W x LC = 75 Payments to capital = RK x K = 75 Barley: Sales revenue = PB x QB = 150 Payments to labor = W x LB = 70 Payments to land = RT x T = 80 What is the specific factor for each type of production? Holding the price of computers constant, suppose the percentage increase in the price of barley is...
Use the following to answer questions 4-7: All 200 consumers are alike and each has a...
Use the following to answer questions 4-7: All 200 consumers are alike and each has a demand curve for a monopolist’s product of p= 20 –2 q. The cost of production C(Q) = 2Q. Let the monopolist charge a price of $PM for qM unit purchased. Find the menu prices that maximize profits? (The buyer pays menu price PM for quantity qM) 4 What is qM ? Select one: a. 0< qM<5 b. 5< qM<10 c. 10< qM<25 d. 25<...
Assume two countries and two goods: Home and Foreign, and shoes and computers. Also assume that...
Assume two countries and two goods: Home and Foreign, and shoes and computers. Also assume that Home is labor abundant, Foreign is capital abundant, the production of shoes is a labor intensive, and the production of computers is capital intensive. If Home and Foreign engage in trade, the relative price of computers increases in Home ( PL increases by 15% and Ps remains the same). Given the following information, Computers Sales revenue: $100 Earnings of labor: $50 Payments to Capital:...
1. Use the specific-factors model to answer question 1. Assume that there are two industries, agriculture...
1. Use the specific-factors model to answer question 1. Assume that there are two industries, agriculture and manufacturing. The agricultural industry uses labor and land as inputs while the manufacturing industry uses labor and capital as inputs. The production function for each good is as follows: Agriculture Production Function Land              Labor          QA            20              0                0 20              1               12         20              2               22         20              3              30         20              4              36         20              5              40 20              6               42         Manufacturing Production Function Capital        Labor             QM            20             ...
Answer these MC: Use the following information to answer the five questions that follow. A firm...
Answer these MC: Use the following information to answer the five questions that follow. A firm has the following production function Q=10LK with the corresponding technical rate of substitution K/L. The wage rate of labor is $10 and the rental price of capital is $100. 24. Suppose the firm has 10 units of capital. In the short run, the cost of producing Q=400 is a) 40 b) 400 c) 1000 d) 1040 25. Suppose the firm wishes to produce Q=400...
Use the information provided below for Herbie to answer questions 4 to 6. The following is...
Use the information provided below for Herbie to answer questions 4 to 6. The following is the general ledger balances of Herbie a herb trading business entity as at 31 July 20.8: HERBIE EXTRACT FROM THE LIST OF BALANCES AT 31 JULY 20.8 R Capital………………………………………………………………………………………….. Drawings……………………………………………………………………………………….. Vehicles at cost (1 August 20.7)…....……………………………………………………….. Accumulated depreciation: Vehicles (1 August 20.7)……………………………………. 100 000 52 000 100 000 46 000 Inventory: Trading (1 August 20.8)………………………………………………………….. Stationery (1 August 20.7)……………………….…………………………………………... Fixed deposit…………………………………………………………………………………... Bank (favourable)…………………………………………………………………………….. Mortgage...
Use the following information to answer questions 1 through 4: The table below shows data for...
Use the following information to answer questions 1 through 4: The table below shows data for the production of Apples for an individual firm operating as a monopoly. Quantity of Apples Price Total Costs 0 600 3000 10 550 3750 20 500 4750 30 450 6000 40 400 8500 50 350 12500 60 300 20000 70 250 32000 80 200 43500 1. Given this data, complete the table: Quantity of Apples Total Revenue (TR) Profit Marginal Revenue (MR) Marginal Costs...
The data in this table are for Wisconsin in August 2020. Use the data to answer...
The data in this table are for Wisconsin in August 2020. Use the data to answer the next two questions. Population 4,661,000 Labor force participation rate 65% Unemployment rate 6.2% Question 6 (3 points) Using the data from the preceding table, determine the number of people in Wisconsin's labor force in August 2020. You do not need to show your work. Your answer: Question 7 (3 points) Using the data from the preceding table, determine the number of unemployed workers...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT