Explain production possibilities curves are bowed outward

Assignment Help Microeconomics
Reference no: EM131608642

Please explain the following questions with examples and theoretical support.

a) In what way does the notion of comparative advantage help to explain that production possibilities curves are bowed outward (the principle of increasing opportunity cost)? Explain your answer in the context of the trade-off between drainpipes and butter.

b) Explain how the long-run market supply curve for a perfectly competitive industry depends on factor prices.

Reference no: EM131608642

Questions Cloud

Explain the factors that will affect demand : Explain the factors that will affect demand, supply, and prices of that product. Examine factors that will affect Total Revenue
Prevailing norms in contemporary society and politics : Do you think that any of any of the advice offered by Machiavelli can apply to modern day politicians? Why? Why not?
What can lobster do to protect his secret recipe : Protozoa has attempted to steal the recipe for years. What can Lobster do to protect his secret recipe?
Concepts and principles of microeconomics : "Over the past seven weeks, we have explored the foundational concepts and principles of microeconomics
Explain production possibilities curves are bowed outward : In what way does the notion of comparative advantage help to explain that production possibilities curves are bowed outward
Why might an increase in wages reduce the supply of labor : Why might an increase in wages reduce the supply of labor? At what point would the supply of labor (hours worked) you would provide
Compute the incremental income after taxes : Compute the incremental income after taxes. What will Johnson’s incremental return on sales be if these new credit customers are accepted?
Considering more liberal credit policy to increase sales : Henderson Office Supply is considering a more liberal credit policy to increase sales, but expects that 9 percent of the new accounts will be uncollectible.
What are the portfolio weights of each stock : what are the portfolio weights of each stock?

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the income elasticity of these groups of goods

Researchers have found that during the last recession, when income fell by 6 percent, many fast-food restaurants saw their sales increase by 8 percent while the sales of soda fell by 12 percent in grocery stores.

  Exemplify the capture theory hypothesis of govt regulation

in what way the US trucking industry exemplified the capture theory hypothesis of government regulation prior to the passage of the Motor Carrier Act of 1980 and the result of hte passage of the Motor Carrier Act in 1980.Determine whether the Justi..

  Decide the after-tax equivalent present worth

A certain engine lathe can be purchased for $390,000 and depreciated over three years to a zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $260,000 (time zero dollars) per year.

  What is the consumer surplus

What is the consumer surplus [loss] associated with the merger and what was the profit before the merger? after? increase? How does the consumer loss compare to the increase in profit?

  Laws of supply and demand

Laws of supply and demand

  How much the percentages of taxes its going to be

They decide how much the percentages of taxes its going to be and they also have restrictions for any new competitors.

  Determine whether it is economical to make the replacement

The replacement of a planing machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine).

  Businesses are

Businesses are the: Sellers in the factor market and buyers in the goods market. Buyers in the factor market and sellers in the goods market.

  Companys view of research and development

Explain how an understanding of the innovation funnel might influence a companys view of research and development?

  Indicate the desirability of discounting the price

You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold ..

  What is the annual equivalent life-cycle cost of gas turbine

A 50-kilowatt gas turbine has in investment cost of $40,000. It costs another $14,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $450 per year.

  Calculate the premerger herfindahl-hirschman index

Calculate the premerger Herfindahl-Hirschman index (HHI) for this market and suppose that any two of these firms merge. What is the post merger HHI?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd