Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 2P
To determine
Level of output.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are
diminishing returns to taking inventory. If one worker uses one computer, he can inventory 100 items per hour. Two workers sharing a
computer can together inventory 150 items per hour. Three workers sharing a computer can together inventory 200 items per hour.
And four or more workers sharing a computer can together inventory fewer than 210 items per hour. Computers cost $100 each and
you must pay each worker $25 per hour.
Instructions: In parts a and b, round your answers to two decimal places. In part c, enter your answer as a whole number.
a. If you assign one worker per computer, what is the cost of inventorying a single item?
b. What is the cost if you assign two workers per computer?
$
What if you assign three?
$
c. How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item?
workers
We have the results from our first Facebook ad campaign. The following table summarizes the
results broken down by age and whether the person seeing the add clicked through.
Age 40 or under
85
Age more than 40
65
Total
Clicked Through
150
Did Not Click
590
260
850
Total
675
325
1000
For our up(combing) (pun intended) campaign, I want to make it as effective as possible, a cut
above all other ad campaigns! I'm thinking that since 85 (or 56.7%) of the 150 people who
clicked through to our website are age 40 or less, we should focus our ads to only younger
people. I'm not great with number though, and since I know you had a stats class in college, I
wanted to get your opinion. Should we focus our adds only to those age 40 and under or should
we do something else?
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job
and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-
of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and
$3,000 per year for equipment.
Please enter your answers as whole numbers with no decimal places (ie. 5000 or $5000 not 5000.00
or "Five thousand dollars"). If you want to enter a negative number use a negative sign "-" and do not
use parenthesis (ie. -2000 or -$2000 not (2000) or (-$2000)).
What is Pat's accounting profit?
What is Pat's economic profit?
Did Pat make the right decision by becoming a personal trainer? (Yes or No)
Chapter 9 Solutions
Microeconomics
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Indicate how each of the following would shift the...Ch. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
Knowledge Booster
Similar questions
- Megan used to work at the local pizzeria for $17,000 per year but quit in order to start her own deli. Last year, she paid $4,000 rent each month, $4,500 for employee payroll each month, and $1,500 for supplies each month. She was planning on selling $2,500 worth of furniture but ended up bringing the furniture to her new deli. She had total revenue of $150,000. She asked an accountant and an economist to calculate her annual costs. Accountant says cost is $120,000, and economist says her cost is $139,500. Accountant says cost is $139,500, and economist says her cost is $120,000. Accountant says cost is $10,000, and economist says her cost is $29,500. Accountant says cost is $30,000, and economist says her cost is $10,500.arrow_forwardGive correct typing answer with explanationarrow_forwardCheck my work Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 185 items per hour. And four or more workers sharing a computer can together inventory fewer than 185 items per hour. Computers cost $125 each and you must pay each worker $30 per hour. Instructions: In parts a and b, round your answers to two decimal places. In part c, enter your answer as a whole number. a. If you assign one worker per computer, what is the cost of inventorying a single item? %24 b. What is the cost if you assign two workers per computer? %24 86 What if you assign three? %24 95 c How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item? 3 workersarrow_forward
- Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5/day. The company also rents spave where orders are prepared. Rent costs $50/day. To make the deliveries, the business also rents two delivery cars the cost $10/day. The costs of ingredients for preparing different numbers of meals are $50. Maria also has to hire between 0-10 workers to buy ingredients, prepare meals, and deliver the orders. She pays them $120/day. The first two columns of the table below shows how many meals different number of workers can prepare and deliver. Suppose that the price of rent increases to $60/day. How many meals does the business have to deliver to earn the highest possible profit? Fill out the table as your answer.arrow_forwardSuppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5/day. The company also rents spave where orders are prepared. Rent costs $50/day. To make the deliveries, the business also rents two delivery cars the cost $10/day. The costs of ingredients for preparing different numbers of meals are $50. Maria also has to hire between 0-10 workers to buy ingredients, prepare meals, and deliver the orders. She pays them $120/day. The first two columns of the table below shows how many meals different number of workers can prepare and deliver. Suppose that a minimum wage is introduced. To comply the new law, Maria has to start paying the workers $140/day. How many meals does the business have to deliver to earn the highest possible profit? Answer by filling out the table. Suppose that the price/meal Maria charges…arrow_forwardSuppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5/day. The company also rents spave where orders are prepared. Rent costs $50/day. To make the deliveries, the business also rents two delivery cars the cost $10/day. The costs of ingredients for preparing different numbers of meals are $50. Maria also has to hire between 0-10 workers to buy ingredients, prepare meals, and deliver the orders. She pays them $120/day. The first two columns of the table below shows how many meals different number of workers can prepare and deliver. Suppose Maria charges $50/order and delivery. What is the max profit she could earn? How many meals does the business have to deliver to earn the highest possible profit? What is the shut-down price of the business? What is the break-even price? Suppose that the price of rent…arrow_forward
- Give correct typing answerarrow_forwardSean is a hard-working college freshman. One Thursday, he decides to work nonstop until he has answered 88 practice problems for his physics course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem. Time Total Problems Answered 8:00 AM 0 9:00 AM 40 10:00 AM 64 11:00 AM 80 Noon 88 Use the table to answer the following questions. The marginal, or additional, gain from Sean’s second hour of work, from 9:00 AM to 10:00 AM, is problems. The marginal gain from Sean’s fourth hour of work, from 11:00 AM to noon, is problems. Later, the teaching assistant for Sean’s physics course gives him some advice. “Based on past experience,” the teaching assistant says, “working on 12 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” For simplicity, assume students always cover the same number of…arrow_forwardPaul owns and operates his own business. To keep up with new technology, he spends $3,000 per year upgrading his computer equipment. He runs the business out of an office in the center. If he didn't use the office as his business office, he could rent it out for $12,000 per year. Paul knows that if he didn't run his own business, he could return to his previous job with a salary of $100,000 per year. Other expenses amount $25,000 per year. How much total revenue does Paul need to make in order for him to want to remain self-employed? A) $128,000 (B) $140,000 C) $28,000 D) None of the answers are correct.arrow_forward
- Until recently, Mark worked as a financial advisor, earning $65,000 annually. Then he inherited a piece of commercial real estate that had been renting for $14,000 annually. Mark decided to leave his job and operate a sea food restaurant in the space he inherited. At the end of the first year, his books showed total revenues of $300,000, and paid a total cost of $200,000 for food, utilities, cooks, and other supplies: Show all your work including formulas learned to support your answer for each of the following: A) Calculate his explicit costs: B) Calculate his implicit costs. C) Calculate his accounting profits. D) Calculate his economic profits.arrow_forwardSerena and John run a business that sets up and tests computers. Assume that Serena and John can switch between setting up and testing computers at a constant rate. The following table applies. Serena John Minutes Needed to Set Up 1 Computer 48 30 Test 1 Computer ? 40 Number of Computers Set Up or Test in a 40-Hour Week Computers Set Up Computers Tested 50 80 (25 computers set up, 40 computers tested) (0 computers set up, 80 computers tested) (8 computers set up, 32 computers tested) (50 computers set up, 0 computers tested) 80 60 Refer to Table 3-7. Which of the following points would not be on Serena's production possibilities frontier, based on a 40-hour week?arrow_forwardAt Dana's dairy farm, the average total cost of producing 19 liters of milk is $10, while the average total cost of producing 20 liters milk is $11. What is the marginal cost of the twentieth liter of milk? Type your numeric answer and submitarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning