Diminishing marginal utility:Marginal utility per dollar:IIncome effect:Substitution effect:Diseconomies of scale:Explicit vs. implicit costs:2Editing A) Define (in your own words,) and give a strong, unique, example for the following terms.elasticity of demand:elasticity of supply:Icross-price elasticity of demand:Income elasticity of demand:Price elasticity of demand:Inelastic:Unit Elastic:Editing

Diminishing Marginal Utility is an economic principle stating that as a person consumes more units…

Answered: Diminishing marginal utility: Marginal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Uncertain which options match each blank: a. Decreases, and therefore the curve shifts down b. Is unaffected, and therefore the curve does not shift c. Increases, and therefore the curve shifts up
What is the most favorable point to exhaust the minimum cost of a producer? Select one: a. indifference curve is tangent to budget line b. AC is minimum c. AFC is minimum d. isoquant is tangent to isocost
Point B in the figure is Cost ($) $75 $50 Multiple Choice 10 Cost Function 20 Quantity (Q) inefficient since it produces 10 units of output at a cost greater than the minimum cost. efficient since it produces 20 units of output at the lowest possible cost. efficient since it produces 10 units of output at the lowest possible cost. inefficient since it produces 20 units of output at a cost greater than the minimum cost.
The marginal utility of additional units of a product tends to: Go up Go down Remain constant There is no marginal utility beyond the first unit.
The activity driver for the packing activity is the number of packing hours. Product A uses 50 packing hours and Product B uses 150 packing hours. Calculate the consumption ratios for each product. Group of answer choices 0.3; 0.7 1; 3 0.25; 0.75 0.215; 0.785
Please no written by hand and no image As producers increase their output, generally the factors of production will become less productive and therefore more costly for each additional unit. This explains the law of diminishing marginal utility income effect substitution effect law of supply law of demand
which of the following best describes marginal product?A.)Left over output- the loaves a bakery makes but does not sell that goes unused. B.) The total number of loaves a bakery can create with 5 workers and a fixed amount of capital. C.) The loaves made by a bakery using a substandard quality flour that ultimately harms business profits. D.) When the number of bakery staff increases from 2 to 3 bakers, 5 additional loaves are made.
Constrained Optimization: Cobb-Douglas Production Function:1. Based from the factor shares of the two inputs, what will happen to the number of output if it the firm decides to triple both the amount of labor and capital?2. State the optimization problem of the firm.3. Solve for the formulas of the Marginal Product of Labor (MPL), and Marginal product ofCapital (MPK)4. Using your knowledge of the tangency condition in Producer’s theory, find the combinationof K and L that the firm should use to produce the maximum possible output. Do not solvethe problem using the Lagrangian method.Note: The tangency conditions just states that the slope of the production function must beequal to the slope of the isocost function.5. What is the maximum possible output that the firm could earn given the constraint it faces?
The diagram shows a student's indifference curves for hours of free time per day and final grade. Based on this graph, which of the following statements is correct? Final grade 100 84 75 0 E B 15 16 Hours of free time per day H 19 20 24 For a given final grade, the student's marginal rate of substitution between free time and final grade is the same on all three indifference curves. The marginal rate of substitution at B is smaller than 9. The marginal rate of substitution at H is 0.25. The marginal rate of substitution is higher at D than at A.
Production. Assume a production with two variable inputs (L, K). Show graphically the following and explain: (a) fixed-proportions production function (b) inputs are perfect substitutes
The slope of an isocost line measures Answer choices The marginal rate of technical substitution The marginal rate of substitution the optimal combination of inputs the ratio of the prices of the inputs
Section B- SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. (3 points each) 1) Assume that an individual with an opportunity cost of time of $20 per hour has to choose between renting four apartments. The rents of the four apartments and the individual's monthly commuting time to work are shown in the following table. Calculate the direct cost, indirect cost, and total cost, that the individual will incur if she rents any of these apartments. Also, determine the apartment that is optimum for the individual. Monthly Commuting Time (hours) Apartment Rent ($) 1 60 2,800 2 90 2,200 1,500 1,400 3. 120 4. 150

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