Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 7, Problem 5SCQ
If two painters can paint
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Evaluate the following statement, ‘a computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it.’
Homework (Ch 02)
100
Tools
80
PPE
60
70, 41
20
20
40
60
80
100
ALFALFA (Millions of bushels)
Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all
that apply.
Point
Inefficient
Efficient
Unattainable
C
E
F
OO0 O00
+u
LAPTOPS (MIllions)
David and Morgan are farmers. Each one owns an 18-acre
plot of land. The following table shows the amount of
zucchini and watermelon each farmer can produce per yea
on a given acre. Each farmer chooses whether to devote a
acres to producing zucchini or watermelon or to produce
zucchini on some of the land and watermelon on the rest.
David
Morgan
180
162
On the following graph, use the blue line (circle symbol) to p
David's production possibilities frontier (PPF), and use the
purple line (diamond symbol) to plot Morgan's PPF.
144
126
100
90
72
54
36
18
0
David
Zucchini
(Pounds per acre)
12
18
0
Morgan
Watermelon
(Pounds per acre)
6
90 180 270 360 450 540 630 720 810 900
ZUCCHINI (Pounds)
-O
David's PPF
Morgan's PPF
has an absolute advantage in the production of zucchin
has an absolute advantage in the production of
watermelon.
?
is
David's opportunity cost of producing 1 pound of waterme
pounds of zucchini, whereas Morgan's opportunity
cost of producing 1 pound of watermelon is
pounds…
Chapter 7 Solutions
Principles of Economics 2e
Ch. 7 - A firm had sales revenue of 1 million last year....Ch. 7 - Continuing from Exercise 7.1, the films factory...Ch. 7 - The WipeOut Ski Company manufactures skis for...Ch. 7 - Based on your answers to the WipeOut Ski Company...Ch. 7 - If two painters can paint 200 square feet of wall...Ch. 7 - Return to the problem explained in Table 7.13 and...Ch. 7 - Suppose the cost of machines increases to 55,...Ch. 7 - Automobile manufacturing is an industry subject to...Ch. 7 - What are explicit and implicit costs?Ch. 7 - Would you consider an interest payment on a loan...
Ch. 7 - What is die difference between accounting and...Ch. 7 - What is a production function?Ch. 7 - What is the difference between a fixed input and a...Ch. 7 - How do we calculate marginal product?Ch. 7 - What shapes would you generally expect a total...Ch. 7 - What are the factor payments for land, labor, and...Ch. 7 - What is the difference between fixed costs and...Ch. 7 - How do we calculate each of the following:...Ch. 7 - What shapes would you generally expect each of the...Ch. 7 - Are there fixed costs in the lung-run? Explain...Ch. 7 - Are fixed costs also sunk costs? Explain.Ch. 7 - What are diminishing marginal returns as they...Ch. 7 - Which costs are measured on per-unit basis: fixed...Ch. 7 - What is a production technology?Ch. 7 - In choosing a production technology, how will...Ch. 7 - What is a long-run average cost curve?Ch. 7 - What is the difference between economies of scale,...Ch. 7 - What shape of a long-run average cost curve...Ch. 7 - Why will firms in most markets be located at or...Ch. 7 - Small Mom and Pop firms, like inner city grocery...Ch. 7 - A common name for fixed cost is overhead. If you...Ch. 7 - How does fixed cost affect marginal cost? Why is...Ch. 7 - Average cost curves (except for avenge fixed cost)...Ch. 7 - What is the relationship between marginal product...Ch. 7 - It is clear that businesses operate in the short...Ch. 7 - Retune to Table 7.2. In the top half of the table,...Ch. 7 - How would an improvement in technology, like the...Ch. 7 - Do you think that the taxicab industry in large...Ch. 7 - A firm is considering an investment that will earn...Ch. 7 - Return to Figure 7.7. What is the marginal gain in...Ch. 7 - Compute the average total cost, average variable...Ch. 7 - A small company that shovels sidewalks and...
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Similar questions
- what is the different between average production and marginal production?arrow_forwardcan you help me answer the questions in the image pleasearrow_forwardJake is a talented artist who sells hand-crafted goods on his website. Jake currently crafts and sells both tea towels and embroidered sweaters. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Choice A B с D E MBROIDERED SWEATERS 25 10 0 1 (Tea towels) 8 6 4 2 2 0 Hours Crafting 3 On the following graph, use the blue points (circle symbol) to plot Jake's initial production possibilities frontier (PPF). 4 TEA TOWELS 5 (Embroidered sweaters) 0 2 4 6 6 8 7 8 O Initial PPF A (Tea towels) 4 New PPF 3 2 1 0 (?) Produced (Embroidered sweaters) 0 12 17 19 20 Suppose Jake is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is per day. Now, suppose Jake is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is per day. ▼ From the previous…arrow_forward
- Which would be technically efficient and which would be economically efficient?arrow_forwardExplain what is meant by allocative efficiency and under what conditions is this efficiency achieved? And explain what is meant by efficiency in production, and under what conditions is this efficiency achieved?arrow_forwardA computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it. Explain why.arrow_forward
- Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?arrow_forwardEric and Ginny are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa Barley (Bushels per acre) (Bushels per acre) Eric 20 4 Ginny 28 On the following graph, use the blue line (circle symbol) to plot Eric's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ginny's PPF. 200 180 Eric's PPF 160 140 120 Ginny's PPF 100 80 60 40 BARLEY (Bushels)arrow_forwardWhat is a product possibility curve?arrow_forward
- Can I have help with the solution ?arrow_forwardNick and Rosa are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of the land and alfalfa on the rest. Barley (Bushels per acre) (Bushels per acre) Alfalfa Nick 10 5 Rosa 40 8 On the following graph, use the blue line (circle symbol) to plot Nick's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Rosa's PPF. (?) Nick's PPF 10 140 120 Rosa's PPF 180 40 20 180 200 300 40 sa0 a0 700 0 s00 1000 BARLEY (Bushela * has an absolute advantage in the production of barley, and has an absolute advantage in the production of alfalfa. Nick's opportunity cost of producing 1 bushel of alfalfa is bushels of barley, whereas bushels of barley. Because * has a comparative Rosa's opportunity cost of producing 1 bushel of alfalfa is Nick has a opportunity…arrow_forward#40arrow_forward
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