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 22, Problem 4DQ
To determine
The efficient allocation of the resources.
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Students have asked these similar questions
Production Techniques:
II
I
III
IV
Labor
4
2.
Capi tal
3
5
1
Answer the next two questions on the basis of the following information: Suppose
30 units of product A can be produced by employing just labor and capital in the four
ways shown below. Assume the prices of labor and capital are $3 and $4
respectively. Which technique is economically most efficient in producing A?
O 1) I.
2) I.
3) |I.
O 4) IV.
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
Suppose there exist two imaginary countries, Yosemite and Sequoia. Their labor forces are each capable of supplying four million hours per day that
can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be
produced by one hour of labor.
Country
Yosemite
Sequoia
Pistachios
(Pounds per hour of labor)
8
LO
5
Chinos
(Pairs per hour of labor)
16
20
Chapter 22 Solutions
Microeconomics
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Prob. 11DQCh. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Suppose that corn currently costs 4 per bushel and...Ch. 22 - Suppose chat both wheat and corn have an income...Ch. 22 - Prob. 3PCh. 22 - Prob. 4P
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- Using the following table with the resources and their cost per unit, which production choice would a business decide to use? $100 $30 $20 Cost per unit Capital Labor Land Production 2 1 2 choice 1 Production 1 5 2 choice 2 Production 2 4 3 choice 3 Production choice 2 Production choice 3 Production choice 1 LOarrow_forwardWhich of the following statements about productive efficiency is true? X: It means that an economy is producing at a point on its production possibility frontier. Y: It will arise if all firms face the same prices for any inputs that are of tion used by more than one firm, and if all firms are economically efficient. O A. Both X and Y O B. X only OC Y only O D. Neither X nor Yarrow_forwardSuppose that you own a 10 acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $30 per acre for seed, $80 per acre for fertilizer, and $70 per care for equipment rentals and labor. With these inputs, the land will yield 40 bushels of wheat per acre. Now suppose the price at which wheat cab be sold is $7 per bushel and that farmers want to earn a normal profit of $10 per acre. What is the most that any farmer would pay to rent your 10 acres? What if the price of wheat rose to $8 per bushel?arrow_forward
- The following table lists the costs incurred by a student attending a public university for one semester: Tuition and Fees Rent and Meals Books and supplies Haircuts Lost wages What is the total opportunity cost that the student incurs by attending college for one semester? A. $10,250 OB. $3,950 OC. $10,430 OD. $3,300 OE. $9,300 $3,000 $950 $300 $180 $6,000arrow_forwardThe figure below shows the market for large bags of potato chips. Market for Potato Chips in large bag units Price ($) 7 LO LO 5 3 2 1 0 10 20 30 40 50 60 70 80 90 100110120 S Darrow_forwardWith current technology, suppose a fifirm 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 fifirm can sell these 400 loaves at $2 per unit, will it continue to produce banana bread? If this fifirm’s situation is typical for the other makers of banana bread, will resources flow to or away from this bakery good?arrow_forward
- Brazil and Colombia can both produce either bananas or coffee. Brazil can produce either 16 pounds of co and 0 pounds of coffee. Colombia can produce either 20 pounds of coffee and 0 pounds of bananas or 4 Bananas (pounds) Coffee (pounds) Country Brazil 64 Colombia 40 20 The opportunity cost of producing 1 pound of bananas for Brazil is O 16 O 1 O 0.25 16 O 48 pounds of coffee.arrow_forwardQUESTION 8 product Y 28 24 20 16 12 8 4 0 0 Production Possibilities Frontier point A -point F 4 8 12 product X point B -point C 16 20 -point E -point D 24 08. Which of the following statements about point C is TRUE? O a) to produce more of product Y, some of product X has to be sacrificed. b) the economy cannot reach this point without an increase in resources or improvement in technology. c) the economy is producing efficiently. d) both (a) and (c). e) none of the above.arrow_forwardThe figure below shows cost and revenue. $(thousands) 400 300 200 100 5 10 C(q) R(q) 15 q (thousands)arrow_forward
- 2. Refer to the data provided in the Table below to answer the following questions. Units of Variable Inputs Required K 2 1 Production 1 unit of output 2 units of output 3 units of output Using Technique A B A B A B 3 2 L 2 3 3 6 Assume the price of labor is $5 and the price of capital is $10. What production technique will be used to produce the one unit of output? Two? Three?arrow_forwardWith current technology, suppose a firm is producing 400 loaves of banana bread dally. Also assume that the least-cost combination of resources for producing those loaves is 10 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $20, $60, $60, and $20, respectively. Assume the firm can sell these 400 loaves at $2 per unit. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. What is the firm's total revenue? What is its total cost? Calculate the amount of economic profit or loss. will R continue to produce banana bread? IClen to select If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good? IClick to selecttarrow_forward1) A manufacturer of breakfast cereals has the opportunity to purchase barley at $3.00 a bushel for 10,000 bushels, if it also buys 5,000 bushels of wheat at $16.00 per bushel. However, the manufacturer does not use any barley in its products, and currently needs 20,000 bushels of wheat. If the current market price of barley is $3.80 per bushel and that of wheat is $15.80 per bushel, should this opportunity be taken, and why? A) Because the company has no need of barley, the opportunity should not be taken. B) Because the opportunity does not meet the company's need for wheat, the opportunity should not be taken. C) Because the value of the opportunity is positive, the opportunity should be taken. D) Because the value of the opportunity is negative, the opportunity should not be taken.arrow_forward
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