Assume an economy with two firms: a coffee beans producer and a coffee shop. In a given year, a coffee beans producer grows 75,000 tonnes of coffee beans, sells 50,000 tonnes of coffee beans to the local coffee shop at $50 per tonne, exports 20,000 tonnes of coffee beans at $50 per tonne, and stores 5,000 tonnes as inventory. The coffee producer pays $100,000 in wages to consumers. The coffee shop produces 1,000,000 cups of coffee and sells all of it to domestic consumers at $4 a coffee. The coffee shop pays consumers $400,000 in wages. In addition to the 1,000,000 coffees consumers buy from the local coffee shop, they (consumers) import and consume 300,000 cups of coffee (coffee pods), and they pay $2 per a coffee pod. Calculate gross domestic product using • the product approach, • the expenditure approach, and • the income approach.

In the island nation of Autarka, cardboard boxes are manufactured by four rms: Andrew'sIndustries, Brett's Boxes, Carla's Cardboard, and Delia's Durables. In Autarka, cardboard boxes are sold in bundles of 100. At present, the market price for a bundle of boxes is $30. The technology for manufacturing cardboard boxes is readily available and common to all manufacturers. The cost of plant and machinery for a rm in the box manufacturing business is $7,000,000 per year. The labour, material, and energy cost of producing abundle of 100 boxes is $20. A market study indicates that demand for cardboard boxes is given by the function,P= 40 - Q/500,000 ;where P represents the price of a bundle of 100 boxes, and Qis the total number of bundles of boxes sold each year. Using the information provided in the scenario, derive a total cost function fora typical cardboard box manufacturer. Use QA to denote the quantity produced by thetypical firm.

Q9. Poland requires 4 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. The Czech Republic requires 6 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. In Poland, what is the marginal product of labor in coal production? 0.25 tons per hour 0.4 tons per hour 2.5 tons per hour O 4 tons per hour

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4. At Alan's landscaping firm, labor is fixed in the short run. Increasing his use of capital always leads to additional output and his production function exhibits both increasing and diminishing marginal returns to capital at different points. Using a two-panel diagram, sketch the marginal, average, and total product of canital at Alan's firm. Your diagram does not need to be to scale, but must be internally consistent and consistent with both the information given and economic theory. Explain your diagram and the relationship between the different curves.