Yvette makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 70 sweaters per year. Now some localstores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital;in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Yvette'ssweater business is a perfectly competitive firm.Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom.Quantity of InputMPP of Each Loom MRP of Each Loom(Sweaters)(Dollars)(Looms)Output(Sweaters per year)70130181226265301If the rental price of a loom is $420 per year, Yvette should useSuppose the demand for sweaters is very elastic, while the demand for cigarettes is very inelastic.Suppose that looms are used exclusively in the production of sweaters and that tobacco is used exclusively in the production of cigarettes. Which ofthe following might we expect?O The supply of tobacco would be more elastic than the supply of looms.O The demand for tobacco would be less elastic than the demand for looms,The demand for tobacco would be more elastic than the demand for looms.The supply of tobacco would be lesa efastic than the supply of fooms.

Marginal Price Product (MPP) refers to the change in the total revenue a firm receives when it…

Yvette makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 70 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Yvette's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom Quantity of Input (Looms) MPP of Each Loom (Sweaters) MRP of Each Loom (Dollars) Output (Sweaters per year) 70 130 181 226 265 301 If the rental price of a loom is $420 per year, Yvette should use Suppose the demand for sweaters is very elastic, while the demand for digarettes is very inelastic.

Yvette makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 70 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Yvette's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom Quantity of Input (Looms) MPP of Each Loom (Sweaters) MRP of Each Loom (Dollars) Output (Sweaters per year) 70 130 181 226 265 301 If the rental price of a loom is $420 per year, Yvette should use Suppose the demand for sweaters is very elastic, while the demand for digarettes is very inelastic.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 4E

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Teresa makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 50 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $20 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Teresa’s sweater business is a perfectly competitive firm.
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2. The company that you manage has already spent $5 million on developing a new product – a website that combines You Tube, Twitter, and Facebook – called You Twit Face. The development is not quite finished. It will cost an extra $3 million to finish development and complete the product. At a recent meeting, your salespeople report that the expected sales of your new product (if you finish) are $7 million total. If you do not finish developing the product you can sell the incomplete product to another company for $2 million. What is the MC of finishing the development? __________________ What is the MB of finishing the development? __________________ Should you finish the product? Why or why not? Use the idea of “thinking at the margin” to explain your answer.
(I am trying to find the simplest way to solve the question if Im using a cas calculator) (Formulas and notes I can put on my calculator are helpful) An apple grower finds that if he plants 80 trees per acre, each tree will yield 26 bushels of fruit. He estimates that for each additional tree planted per acre, the yield of each tree will decrease by 4 bushels. Given a price of $1.00 per bushel, find the maximum revenue and how many trees should he plant per acre to maximize her harvest? 36 trees per acre, maximum revenue of $7,480 37 trees per acre, maximum revenue of $7,482 43 trees per acre, maximum revenue of $7,482 44 trees per acre, maximum revenue of $7,480
John is the owner of “Down Town Pizza & Salad Bar” (NY). At the end of the year, John has the following information: Total Revenue = $290,000. Wages = $58,000, rent = $28,000, material & ingredients = $46,000, and utilities = $12,000. Also, Pizza Hut just offered him a job earning of $78,000. John invested $32,000 of his own savings in a new industrial oven. The oven at the end of the year can be sold at $18,000. The interest rate at the end of the year is 3.2%. According to this information, economic profits = $__
John is the owner of “Down Town Pizza & Salad Bar” (NY). At the end of the year, John has the following information: Total Revenue = $290,000. Wages = $58,000, rent = $28,000, material & ingredients = $46,000, and utilities = $12,000. Also, Pizza Hut just offered him a job earning of $78,000. John invested $32,000 of his own savings in a new industrial oven. The oven at the end of the year can be sold at $18,000. The interest rate at the end of the year is 3.2%. According to this information, what would you advice? John should continue the business because economic profits are positive. John should continue the business because accounting profits are positive. John should continue the business because accounting profits are higher than economic profits. John should not continue the business because economic profits are less than accounting profits.