Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 14, Problem 7IAPA
To determine
To explain:
The way facts of the news clip affect the short-run, long-run average cost and marginal cost of producing electricity.
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Serena and John run a business that sets up and tests computers. Assume that Serena and John can switch
between setting up and testing computers at a constant rate. The following table applies.
Serena
John
Minutes Needed to
Set Up 1
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48
30
Test 1
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?
40
Number of Computers Set Up or Test
in a 40-Hour Week
Computers Set Up Computers Tested
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(25 computers set up, 40 computers tested)
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80
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Refer to Table 3-7. Which of the following points would not be on Serena's production possibilities frontier,
based on a 40-hour week?
When examining the costs faced by a business, explain how economists distinguish between the short run and the long run. Why is it that Diminishing Marginal Product applies in the short run but not the long run?
Sean is a hard-working college freshman. One Thursday, he decides to work nonstop until he has answered 88 practice problems for his physics course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem.
Time
Total Problems Answered
8:00 AM
0
9:00 AM
40
10:00 AM
64
11:00 AM
80
Noon
88
Use the table to answer the following questions.
The marginal, or additional, gain from Sean’s second hour of work, from 9:00 AM to 10:00 AM, is
problems.
The marginal gain from Sean’s fourth hour of work, from 11:00 AM to noon, is
problems.
Later, the teaching assistant for Sean’s physics course gives him some advice. “Based on past experience,” the teaching assistant says, “working on 12 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” For simplicity, assume students always cover the same number of…
Chapter 14 Solutions
Foundations of Economics (8th Edition)
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- Beth is a hard-working college senior. One Saturday, she decides to work nonstop until she has answered 100 practice problems for her math course. She starts work at 8:00 AM and uses a table to keep track of her progress throughout the day. She notices that as she gets tired, it takes her longer to solve each problem. Time Total Problems Answered 8:00 AM 9:00 AM 40 10:00 AM 70 11:00 AM 90 Noon 100 Use the table to answer the following questions. The marginal, or additional, gain from Beth's first hour of work, from 8:00 AM to 9:00 AM, is problems. The marginal gain from Beth's third hour of work, from 10:00 AM to 11:00 AM, is problems. Later, the teaching assistant in Beth's math course gives her some advice. "Based on past experience," the teaching assistant says, "working on 35 problems raises a student's exam score by about the same amount as reading the textbook for 1 hour." For simplicity, assume students always cover the same number of pages during each hour they spend reading.arrow_forwardWhat are different types of costs involved in production of goods and services? Analyze the relationship between cost and productivity in the short run.arrow_forwardRaphael is a hard-working college senior. One Saturday, he decides to work nonstop until he has answered 100 practice problems for his math course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem. Time Total Problems Answered 8:00 AM 9:00 AM 40 10:00 AM 70 11:00 AM 90 Noon 100 Use the table to answer the following questions. The marginal, or additional, gain from Raphael's first hour of work, from 8:00 AM to 9:00 AM, is problems. The marginal gain from Raphael's third hour of work, from 10:00 AM to 11:00 AM, is problems. Later, the teaching assistant in Raphael's math course gives him some advice. "Based on past experience," the teaching assistant says, "working on 15 problems raises a student's exam score by about the same amount as reading the textbook for 1 hour." For simplicity, assume students always cover the same number of pages during each hour they spend…arrow_forward
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