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 4, Problem 2RQ
To determine
Changes in output to achieve efficiency in production.
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Students have asked these similar questions
1) 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.
Refer to the above diagram for athletic shoes.
Marginal
Cost
Marginal
Benefit
Quantity of shoes
If the current output of shoes is Q3, then:
society would consider additional units of shoes to be less valuable than
O 1)
alternative products.
2) resources are being allocated efficiently to the production of shoes.
society would consider additional units of shoes to be more valuable than
O 3)
alternative products.
4) society would experience a net gain by producing more shoes.
Marginal benefit
and marginal cost
(dollars)
Market demand is Qd = 100 - p. Market supply is Qs = 4p. A competitive firm has MC = 2Q. How
%3!
many units of output will the firm produce?
O 10
O 20
33.3
O 15
Chapter 4 Solutions
Microeconomics
Ch. 4.A - Prob. 1ADQCh. 4.A - Prob. 2ADQCh. 4.A - Prob. 3ADQCh. 4.A - Prob. 1ARQCh. 4.A - Prob. 2ARQCh. 4.A - Prob. 3ARQCh. 4.A - Prob. 1APCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQ
Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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