Economics : Micro 4
4th Edition
ISBN: 9781305436855
Author: MCEACHERN
Publisher: CENGAGE L
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Chapter 16, Problem 4.9PA
To determine
the difference between the incentives and feedback for government bureaus and the profit making firms.
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Question 2: (word count: 500 words)
Select at least two local companies and describe/explain the duties- in your own words- of the types of committees and teams active in the chosen companies.
Subject: Microeconomics
Topic: The theory of firm production and cost
1
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- 5arrow_forwardSection C- ESSAY. Write your answer in the space provided or on a separate sheet of paper. (-- 1) The following table shows the output and employment figures for a bakery. Calculate the missing values in the table. Output Marginal Variable per Day (units) Average Average Average Marginal Fixed Variable Number Fixed Total of Product Cost (S) Cost Cost Total Cost ($) Workers (MP) (5) 300 Cost (S) Costs (S) Cost ($) (S) 1 150 20 300 315 40 300 3 160 60 300 140 80 300 730 100 300 6. 830 120 300 7 900 140 300 60 160 300arrow_forwards. What is Economic System? And differentiate pure market and pure command economies with respect to answering the three fundamental questions, What, How and For Whom to produce. 6. (a) What is inflation and what causes it? (provide one cause only) (b) How are inflation and unemployment related in the short run?arrow_forward
- Question 4: (A)The price of a product is determined by market conditions. The company is a price taker rather than a price maker. It estimates product cost by subtracting a desired profit margin from a competitive market price. It makes reference to the competitive market; it is fundamentally customer-focused and an important concept for new product development. From the above identify the concept; explain the definition and process of concept.arrow_forward9arrow_forward.Please explain whether the following statements are true or false. Question (a) if the owner of a business pays himself no salary, then the accounting cost is zero, but the economic cost is positive. (true or false) please explain Question ( b) A firm that has positive Accounting profit does not necessarily have positive economic profit. ( true or false) please explain Question (c) If a firm hires a currently unemployed worker, the opportunity cost of utilizing the worker’s service is zero.(true or false) please explainarrow_forward
- 1. (10 points) (a) You are an efficiency expert hired by a manufacturing firm that uses K (capital) and L(labor) as inputs. The firm produces and sells a given output. If w (price of labor) = $40, r (price of capital) = $100, MP₁ = 20, and MPx = 40 is the firm minimizing cost? Please explain and show any calculations. (b) The production function for a competitive firm is Q=K05L05. The firm sells its output at a price of $10 (per unit) and can hire labor at a wage of $5 (per worker). K0.5 Marginal Product of labor = 0.50.5 Capital is fixed at 25 units. Since capital is fixed, there is no marginal product of capital. What is the profit-maximizing quantity of labor? Please show your calculations.arrow_forwardPRe TEST: Situation Analysis ( Essay) 1. If you were to start a business, would you have to search for an idea, or do you already have an idea to try? Explain. 2. Why would small business ownership have great appeal to immigrants, women, and minorities? 3. How would you go about deciding whether you wanted to start a business from scratch, buy an existing business, or buy a franchise? 4. Many entrepreneurs say they did a little planning, perhaps scratching notes on a legal pad. How is it possible for them to succeed? 5. Do you think entreprenurs who launched a new business after deciding to leave a job on their own versus those who have been forced to leave a job as a result of downsizing are likely to have different traits? Which group is more likely to succeed?arrow_forward(J) Suppose the production process of a particular good creates a negative externality such as pollution. Other things being equal, would society be better off if this good were produced by a perfectly competitive market or by a monopoly? a. Society would be better off if this good were produced by a perfectly competitive market, because a perfectly competitive market responds to consumers' desires in the long run b. Society would be better off if this good were produced by a perfectly competitive market, because a perfectly competitive market will produce the quantity where Marginal Revenue equals Marginal Cost c. Society would be better off if this good were produced by a monopoly,arrow_forward
- 56. A firm sells its output in a perfectly competitive market and hires two inputs, capital and labor, in perfectly competitive factor markets. The product price is $15 per unit, the wage is $75 per day, and the marginal product of capital is 3. If the firm is choosing the least-cost combination of labor and capital, the firm's marginal product of labor and the price of capital must be equal to which of the following? (A) (B) (C) (E) Marginal Product of Labor Price of Capital 23555 $5 $45 $15 $25 $45arrow_forward1- "Human resource managers have some distinct functions" Describe and give some examples of each function.arrow_forward1. What is the importance of Economics in decision making to those in business sector? Explain briefly Thank you for answering:)arrow_forward
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