Question1 A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of server time per unit of machinery time. Determine whether the restaurant is minimizing its cost of production when the ratio of marginal products (capital to labor) is 12. If not‚ what adjustments are called for to improve the efficiency in resource use? The ratio of prices PK/PL= r/w= 50/5=10 and The capital
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Assignment #4: CHAPTER 3 - Why Do Firms Cluster? 2. Labor Pooling: What’s Fixed and Variable? Consider the model of labor pooling‚ with each firm locating either in an isolated site or in a cluster with other firms. Fill the blanks with "fixed" or "variable". A. In an isolated site‚ the wage is variable and the firm’s workforce is fixed because the supply of labor is perfectly inelastic. B. In a cluster‚ the wage is fixed and the firm’s workforce is variable because the supply of labor is
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MBA 515 Practice Multiple Choice Questions 1. If the price of automobiles were to increase substantially‚ the demand curve for gasoline would most likely A) shift leftward. B) shift rightward. C) remain unchanged. D) become steeper. 2. Recently‚ many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop. If one of these laws passes‚ we would expect A) the supply curve for soda pop to shift to the right. B) the supply curve for soda pop to become more vertical
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1：Mercantilists believed that a nation would benefit from achieving: an even trade balance (exports equal to imports). a positive or favorable trade balance (exports larger than imports). as much self-sufficiency as possible (minimal exports and imports). a trade deficit‚ funded by loans from other nations. [我的答案] a positive or favorable trade balance (exports larger than imports). 2：Adam Smith’s theory was based on the labor theory of value‚ assuming that: the value of labor depended
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like we did in our week 2 TDA discussion). 4. Calculating Profit or Loss (TCO C) Given a product price‚ as well as fixed and variable costs at different production levels‚ be able to determine whether the firm earns an economic profit‚ breaks even‚ or incurs an economic loss at the best possible production level. Also be able to determine how much the profit or loss will be (similar to a question you had on Quiz 1). 5. Marginal Analysis (TCO D) A key issue covered in several TCOs involves
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GDP 2000 CONSUMPTION 1500 Government 300 Net taxes 400 Private saving equals ____ and national saving equals ____. A) 100; 100 B) 100; 200 C) 200; 300 D) 500; 500 E) 500; 600 Answer: B You are given the following information about the economy: Household saving 300 Business saving 700 Government purchases 1‚000 Government transfers and interest payments 500 Government tax collections 1‚500 GDP 5‚000 Public saving is _____ and national saving is
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1. Labor Demand curve for Perfect Competition and Labor Demand for Labor for Imperfect Competition * Table 1.1 Demand for Labor: Firm selling in a Perfectly Competitive Product Market Units of Labor | TP | MP | Product Price‚ P | Total Revenue‚ TR | MRP (TR/L) | VMP (MP*P) | 4 | 16 | | $2 | $32 | | | 5 | 28 | 12 | 2 | 56 | $24 | $24 | 6 | 37 | 9 | 2 | 74 | 18 | 18 | 7 | 43 | 6 | 2 | 86 | 12 | 12 | 8 | 46 | 3 | 2 | 92 | 6 | 6 | 9 | 48 | 2 | 2 | 96 | 4 | 4 | * X- Axis
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Kelsea Shick Economics October 5‚ 2010 An economic system consists of production‚ distribution/consumption of goods and services of an economy (Grolier). Without any of the above an economy would not become as industrialized and successful as either the
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References: KENNETH J. (1961): "The Economic Implications of Learning by Doing‚" Review of Economic Studies‚ 29‚ 155-173. BACKUS‚ DAVID K.‚ PATRICK J. KEHOE‚ AND TIMOTHY J. KEHOE (1991): "In Search of Scale Effects in Trade and Growth‚" Federal Reserve Bank of Minneapolis Working Paper. (1992): "Convergence‚" AND and Welfare‚" American EcoBAUMOL‚ WILLIAM J. (1986): "Productivity Growth‚ Convergence‚ nomic Review‚ 76‚ 1072-1085. Welfare: Reply‚" American Economic Review‚ 78‚ 1155-1159. (1990): "Capital
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Quiz 1 1. An increase in the imports of clothing into the U.S from India wills benefits the____________ & hurt the___________. A) U.S. clothing producers; Indian clothing producers B) Indian consumers; Indian clothing producers C) U.S consumers; Indian clothing producers D) U.S consumers; U.S clothing produces 2. Suppose Country A‚ a labor-abundant country‚ produces only wheat & cloth. The following equations illustrate the prices & costs of wheat and cloth in
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