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 2, Problem 12DQ
To determine
Improving the market system along with protecting the employees and supplier.
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2 B
agriculture
Here's a production possibility frontier graph. In this example....
At point E, approximately what is the cost of another unit of industry?
O6 units of agriculture
O 4 units of agriculture
9 10 11
O2 units of agriculture
O 1 unit of agriculture
O 0 units of agriculture
The graph below shows production possibilities frontiers for Cornelius and David, two priests
that aid the Mondoshawan race. David is Cornelius' apprentice, and they each spend their time
either deciphering old prophecies or developing plans to save the world (which comes in handy
later). Use this information to answer the following 3 questions.
Plans
10
9
8
7
6
LO
5
4
3
2
1
8°
Cornelius
David
0 1
2
3
4
5
c. Both (a) and (b).
d. Neither (a) nor (b).
6
7
8
b. 10 translations and 4 plans.
C.
5 translations and 11 plans.
d. 9 translations and 9 plans.
9
Translations
10
1. (Cornelius and David) Which of the following statements is true?
a. Cornelius' opportunity cost of one translation is ½ of a plan.
b. Cornelius' opportunity cost of one translation is less than David's opportunity cost
of one translation.
2. (Cornelius and David) If David and Cornelius engage in trade, which of the following
points is both feasible and efficient in production?
a. 18 translations and 14 plans.
With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. If the firm can sell these 400 loaves at $2 per unit, what is its total revenue? Its total cost? Its profit or loss? Will it continue to produce banana bread? If this firm’s situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good?
Chapter 2 Solutions
Microeconomics
Ch. 2.2 - Prob. 1QQCh. 2.2 - Prob. 2QQCh. 2.2 - Prob. 3QQCh. 2.2 - Prob. 4QQCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQ
Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4P
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