Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 19, Problem 6MCQ
To determine
To choose:
The option that correctly explains what a firm does to maximize the profit.
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What does the Law of Supply state?
Why do supply and demand curves slope in opposite directions?
How is the elasticity of supply affected by the way a product is produced?
Explain the difference between a total product and a marginal product.
What is the difference between a fixed cost and a variable cost?
Note: use references from published scientific articles
A dairy business jointly produces butter and cheese from a "fixed" amount of milk as shown
in the table below. The price of butter per pound is $0.5 and the price of cheese per pound is
$2. If the dairy business wishes to maximize its profit, it will produce
of cheese.
Cheese gained (in pounds) Profit gained from increased Butter forgone (in pounds) Profit lost from decreased
production of cheese
production of butter
(C)
1
1
1
1
a. 1 pound
Ob. 3 pounds
4 pounds *
c.
Od. 2 pounds
(A)
(B)
2
3
4
5
6
(D)
(E)
a) identify which of production level that marginal revenue decreases start to occur (with supposition price factor does not change)
b) identify which of production level and price that can provide maximum profit.
Chapter 19 Solutions
Foundations of Economics (8th Edition)
Ch. 19 - Prob. 1SPPACh. 19 - Prob. 2SPPACh. 19 - Prob. 3SPPACh. 19 - Prob. 4SPPACh. 19 - Prob. 5SPPACh. 19 - Prob. 6SPPACh. 19 - Prob. 7SPPACh. 19 - Prob. 8SPPACh. 19 - Prob. 9SPPACh. 19 - Prob. 10SPPA
Ch. 19 - Prob. 1IAPACh. 19 - Prob. 2IAPACh. 19 - Prob. 3IAPACh. 19 - Prob. 4IAPACh. 19 - Prob. 5IAPACh. 19 - Prob. 6IAPACh. 19 - Prob. 7IAPACh. 19 - Prob. 8IAPACh. 19 - Prob. 9IAPACh. 19 - Prob. 1MCQCh. 19 - Prob. 2MCQCh. 19 - Prob. 3MCQCh. 19 - Prob. 4MCQCh. 19 - Prob. 5MCQCh. 19 - Prob. 6MCQCh. 19 - Prob. 7MCQ
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