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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For each of the following cases, determine whether the firm should (A) Use more labor and less capital, or (B) Use more capital and less labor. 1. The marginal rate of technical substitution is 2 (i.e., the marginal product of labor is twice the marginal product of capital) and the input price ratio is 3 (i.e., a unit of labor costs three times as much as a unit of capital) 2. The marginal rate of technical substitution is 2 (i.e., the marginal product of labor is twice the marginal product of capital) and the input price ratio is 1 (i.e., a unit of labor costs the same as a unit of capital) 3. The marginal rate of technical substitution is initially equal to the input price ratio, but the firm's machines depreciate, so that the marginal product of capital decreases. 4. The marginal rate of technical substitution is initially equal to the input price ratio, but the firm successfully negotiates a lower rate of rent for their machines, so that the price of capital decreases. 5. The…
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 would happen to your client budget constraint line for shoes (X) and sneakers (Y) if cost of sneakers rose.Would it move right, left, stay unchanged , change slope?
List and discuss three (3) factors affecting the upward sloping curve.
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.
Q18. Economists refer to this pattern, the which means person allocates more resources to a purpose, the additional or marginal return from eac unit of the resources diminish. A. law of diminishing return B. law of diminishing marginal utility C. law of increasing cost D. A or C
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
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?
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

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