The town of Bookville has a massive public library system. Bookville's municipal government faces a tradeoff between retaining the current number of library workers and replacing some of its workers with computers. The four options available to the government are given in table below. Computers and software cost $5,000 each and must be replaced each year. After the introduction of a strong union, the annual salary for workers increases to $27,000. In these circumstances, the optimal choice from a cost perspective for the city government is Choice Number of Workers Number of Computers 30 50 100 10 150 300 20

Please help; I'm confused on this one. I got d as my answer, but I feel the correct answer should be (C), an increase in supply since the marginal cost is being increased due to work safety regulations.

You hired a mathematician (who never took a Natural Resource Economics class) to solve a 4 period nonrenewable resource problem assuming a competitive industry and a total resource constraint of 100. He returns an answer to you where per period output levels are increasing and he gets a lambda value: 1 = -3.45. From this you conclude: Demand is too low for the constraint of 100 to be binding. Therefore there is no scarcity. The mathematician must have made a mathematical mistake. Competitive firms place no weight on the future and therefore behave like there is no opportunity cost of extracting a resource today. Demand is too high to support the extraction of the resource so the marginal user cost become negative.

Recall a sharecropping agreement is where a farmer provides a percentage of their yield to a landowner in exchange for renting the land. Consider the graph below and answer the following questions (include calculations in work): 11 VMPL 10 8 a*VMPL 5 4 3 2 1 10 15 20 25 30 35 40 45 50 55 Labor (Hour) "andıno