Question

1. Use the data that is posted below to answer the following questions. If your answer has units to it, then please state those units.

Production Options |
Sugar beets (tons) |
Wheat (tons) |

A |
200 |
0 |

B |
180 |
20 |

C |
140 |
40 |

D |
80 |
60 |

E |
0 |
80 |

a) Graph Production Possibilities Frontier (Curve) for Sugar Beets and Wheat. Put sugar beets on the vertical axis and label that axis Sugar Beets and put wheat on the horizontal axis and label that axis Wheat.

b) If we are producing 140 tons of beets and 20 tons of wheat, what is the cost of producing 40 more tons of beets?

c) If we are producing 140 tons of beets and 40 tons of wheat, what is the cost of producing 40 more tons of beets?

d) Explain why your answers for (b) and (c) above are different. After all in both questions we increased the production of beets by the same 40 tons.

e) What can we say about the economy currently producing 140 tons of sugar beets and 60 tons of wheat given no change in resources and technology?

f) Which production option above (A, B, C, D or E) is the best point for this economy to be at? Explain your answer.

2.The following table represents short run cost-revenue
information (**in dollars**) for a firm in a
competitive market.

Q |
P |
TR |
MR |
MC |
TC |
Total Profit |

0 |
0 |
N/A |
N/A |
1000 |
||

1 |
200 |
1200 |
||||

2 |
400 |
1340 |
||||

3 |
600 |
60 |
||||

4 |
800 |
1420 |
||||

5 |
1000 |
1440 |
||||

6 |
1200 |
60 |
||||

7 |
1400 |
80 |
1580 |
|||

8 |
1600 |
140 |
||||

9 |
1800 |
|||||

10 |
2000 |

(a) Fill in all the blanks above using the following information: The Market Price is $200 per unit of output, the VC of producing 9 units of output is $920, and the ATC of producing 10 units of output is $220

(b) Where does diminishing returns start? Explain your answer.

(c) What is the Fixed Costs for this firm? Explain your answer.

(d) In the Short Run, if this firm would go into production, determine the profit maximizing (or loss minimizing) level of output and profit amount.

(e) In the Short Run, if this firm would instead shutdown without going into production, determine its production amount and profit amount.

(f) Please determine the best course of action for this firm in the Short Run. Please explain your reasoning.

(g) Based on the data above, in the Long Run,
**explain** what this firm should do and why the firm
should pick this course of action.

Answer #1

Use the data that is posted below to answer the following
questions. If your answer has units to it, then please state those
units.
Production Options
Sugar beets (tons)
Wheat (tons)
A
100
0
B
90
10
C
70
20
D
40
30
E
0
40
a) Graph Production Possibilities Frontier (Curve) for Sugar
Beets and Wheat. Put sugar beets on the vertical axis and label
that axis Sugar Beets and put wheat on the horizontal axis and
label that axis...

1. The table below
shows PPF for a country. Use it to answer the following
questions:
Calculate the opportunity cost of a pound of corn. Make a table
that shows the opportunity cost of a pound of corn as we
increase wheat production and decrease corn
production.
If we currently produce 14 pounds of corn and 26 pounds of
wheat a day, calculate the opportunity cost of a pound of wheat and
of a pound of corn. Explain your answer....

Question 1: We have the following information
about an economy. Use this information to answer the questions
below.
Table 1: Number of Cars and Bushels of Wheat Possible
for an Economy to Produce
Point
Number of Cars (in 10,000s)
Bushels of Wheat (in 100,000s)
A
0
700
B
60
630
C
120
530
D
180
400
E
240
220
F
300
0
Use the information in the table to graph a production
possibilities curve for this economy. Put cars on...

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...

Answer the following and state your reasoning.
(1) Economists normally assume that the goal of a firm is to
(i)
sell as much of its product as possible.
(ii)
set the price of the product as high as possible.
(iii)
maximize profit.
a.
(i) and (ii) only
b.
(ii) and (iii) only
c.
(iii) only
d.
(i), (ii), and (iii)
(2) Suppose that for a particular firm the only variable input
into the production process is labor and that output...

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...

11.
Use the following demand and supply functions to answer the
question below:
Demand: Qd = 900 - 60P .
Supply: Qs = -200 + 50P .
Equilibrium price and output are:
A.
P = $7 and Q = 480.
B.
P = $10 and Q = 300.
C.
P = $20 and Q = 150.
D.
P = $100 and Q = 5,300.
E.
None of the above.
16. In a monopolistically competitive industry in long-run
equilibrium
A.
Each...

Question 1: We have the following information about an economy.
Use this information to answer the questions below.
Table 1: Number of Cars and Bushels of Wheat Possible for an
Economy to Produce Point Number of Cars (in 10,000s) Bushels of
Wheat (in 100,000s)
A 0,700 B 60, 630 C 120, 530 D 180, 400 E 240, 220 F 300, 0
a) Use the information in the table to graph a production
possibilities curve for this economy. Put cars on...

Use the following production and cost function to answer the
questions that follow:
a. Assume capital is fixed at 100 units in the
short-run, how much labor is required to produce
1000 units of output?
b. How much will this amount of labor plus the 100 units of
capital cost the firm in the short run?
c. What is the “cost minimizing” input requirements (of L and k)
to produce 1000 units of output in the
long-run?
i. Cost minimizing...

A firm has a daily production function q = 2.5L^1/3K^1/3.
Currently, the firm rents 8 pieces of equipment. The amount of
equipment is fixed in the short run. The unit wage rate is $25
while the rental cost of capital is $100.
Find the short run production function.
Find the number of workers the firm wishes to employ to produce
q units (the short run conditional demand for labor).
Find the firm’s short run total cost
Find the firm’s short...

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