Hand written solutions are strictly prohibited. The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and theinner set of arrows (shown in red) shows the corresponding flow of inputs and outputs.FirmsMarkets forGoods and ServicesMarkets forFactors of ProductionHouseholds Based on this model, firms earn revenue whenpurchaseSuppose Crystal earns $650 per week working as a software engineer for Casement. She uses $10 to have a drink at Barry's Bar. Barry's Bar paysBrian $225 per week to work as a bartender. Brian uses $250 to purchase software from Casement.EventCrystal spends $10 to have a drink.Identify whether each of the following events in this scenario occurs in the factor market or the product market.Factor Market Product MarketCrystal earns $650 per week working for Casement.Brian earns $225 per week working for Barry's Bar.in product markets.Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all thatapply.Crystal's laborThe $250 Brian spends to purchase software from CasementThe cocktail Crystal receivesThe $225 per week Brian earns working for Barry's Bar

The circular flow model describes the movement of money, goods, and services within an economy.…

Based on this model, firms earn revenue when Suppose Crystal earns $650 per week working as a software engineer for Casement. She uses $10 to have a drink at Barry's Bar. Barry's Bar pays Brian $225 per week to work as a bartender. Brian uses $250 to purchase software from Casement. purchase Event Crystal spends $10 to have a drink. Crystal earns $650 per week working for Casement. Brian earns $225 per week working for Barry's Bar. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market in product markets. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. Crystal's labor The $250 Brian spends to purchase software from Casement The cocktail Crystal receives The $225 per week Brian earns working for Barry's Bar

Based on this model, firms earn revenue when Suppose Crystal earns $650 per week working as a software engineer for Casement. She uses $10 to have a drink at Barry's Bar. Barry's Bar pays Brian $225 per week to work as a bartender. Brian uses $250 to purchase software from Casement. purchase Event Crystal spends $10 to have a drink. Crystal earns $650 per week working for Casement. Brian earns $225 per week working for Barry's Bar. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market in product markets. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. Crystal's labor The $250 Brian spends to purchase software from Casement The cocktail Crystal receives The $225 per week Brian earns working for Barry's Bar

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.14P

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Question You are the manager of a firm and you are required to optimize the Cobb Douglas function given the following parameters. The maximum amount of money available is$1600 where the price of K = 12 and the price of L=6. That is PK=12 and PL=6. The function is given as q=K0.4+L0.6. What is the constraint equation? a. none of the above b. 12K - 6L = 1600 c. 12K/6L = 1600 d. 12K+6L=1600
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