Answered: Discuss the impact of the following…

Discuss the impact of the following factors on the optimal method of procuring input Benefits from specialization Bureaucracy cost Opportunism on either side

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Discuss the impact of the following factors on the optimal method of procuring input

Benefits from specialization
Bureaucracy cost
Opportunism on either side
Specialized investments
Unspecified events
Barging cost

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What is an example of a fixed cost? Group of answer choices Expenditures for raw materials. Wages for unskilled labor. Shipping charges. Property insurance premiums.
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Adam Smith observed that the division of labour is limited by the size of the market. Which one of the following statements is not consistent with this observation? Multiple Choice A limited-sized market can prevent firms from achieving economic capacity A limited-sized market can prevent firms from achieving their minimum efficient scale. A limited-sized market can prevent firms from achieving minimum long-run average cost A limited-sized market can prevent firms from achieving minimum short-run average cost A limited-sized market can prevent firms from achieving excess capacity FER Next >
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Catalog and Study Tools Rental Options College Success Tips Career Success Tips ? Help Give Feedback 5. Problems and Applications Q5 1. Initial Demand and Equilibrium 2. New Output Price Q = 120L-L² MPL = 120- 2L The nation of Ectenia has 40 competitive apple orchards, which sell apples at the world price of $2 per apple. The following equations describe the production function and the marginal product of labor in each orchard: where is the number of apples produced in a day, L is the number of workers, and MPL is the marginal product of labor. Suppose the world price of apples doubles to $4 per apple. OL=60-0.25W OL=120-2W What is each orchard's labor demand as a function of the daily wage W? OL= 2,400-5W OL=60-0.125W 3. Crop Destruction What is the market's labor demand? OL= 2,400 10W OL= 2,400-5W OL=120 - 10W STEP: 2 of 3 OL=60-0.125W Ectenia has 200 workers who supply their labor inelastically. The equilibrium wage is $ per worker per day. Each orchard hires. that wages are the…