Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 17.3, Problem 4QQ
To determine
What shift ion supply curve leads to cost reduction.
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Students have asked these similar questions
Brian uses wool (K) and labour (L) to produce t-shirts (q).
The production function is: q = min{1/3L, 2K}.If he uses 1 kg of wool and 3 hours of labour, he can produce 1 t-shirt.1. Draw isoquants for q = 1 and q = 2 on a diagram with labour on the horizontal axis and wool on the vertical.
2. The pice of wage per hour is given by w=$10 and the price of each kg of wool is given by r=$4. What is the optimal bundle of that he can produce in order to minimise costs? Draw the isocost lines.
Directions: For each of the following problems you should use EXCEL to calculate the various
measures of costs. There are supplemental instructions for each problem. For your final copy to
turn in you should make sure that each problem is numbered and that headings are provided for
each column of numbers. You should also provide headings for each problem and graph and
other appropriate documentation. Round all numbers to two decimal points.
1. You are given the following total cost function for a firm:
TC = (25+F) +L xQ+0.5 x(Q²)
where F-the number of the letter of the alphabet corresponding to the initial of
your first name, and L-number of the letter of the alphabet corresponding to the
initial of your last name. For example, if your name were Bill Weber, F=2 and
L=23, so (MY NAME IS GABRIEL RIVES)
TC = 27+ 23 xQ+ 0.5 × Q.
Calculate TC, TFC, and TVC for the levels of output between Q-0 and Q=30 (i.e._
Q-0, Q=1, Q=2, Q=3,..., Q=29, Q=30). Make a graph of TC, TFC, and TVC as a
function…
If two inputs are perfect substitutes
a.
The isoquant is a straight line and the MRTS is constant
b.
The isoquant is L shaped and the MRTS is indeterminate
c.
The isoquant is a straight line and the MRTS is diminishing as we move down
d.
The isoquant is a straight line and MRTS is increasing as we move down
Chapter 17 Solutions
Microeconomics
Ch. 17.3 - Prob. 1QQCh. 17.3 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17.3 - Prob. 4QQCh. 17.A - Prob. 1ADQCh. 17.A - Prob. 2ADQCh. 17.A - Prob. 3ADQCh. 17.A - Prob. 4ADQCh. 17.A - Prob. 1ARQCh. 17.A - Prob. 2ARQ
Ch. 17.A - Prob. 3ARQCh. 17.A - Prob. 4ARQCh. 17.A - Prob. 1APCh. 17.A - Prob. 2APCh. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5P
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