Reference no: EM13153223
1) Sweaters are produced using machines and labour. The following table shows the isoquants associated with producing 10, 20, 30 and 40 sweaters. The first number in the input bundle is units of labour, the second is units of capital.
The price of one unit of labour is $2.00. The price of one unit of capital is $3.00.
(a) Show graphically, using an isoquant diagram, the optimal way to produce 10, 20, 30 and 40 sweaters.
(b) Using the results obtained above, derive a table for the long run costs of the various levels of production of sweaters (10, 20, 30, 40). The table should show: quantity, total cost, average cost and marginal cost.
(c) Assume that the firm has built the optimal plant (i.e., purchased the optimal amount of capital) to produce 30 sweaters. In the short run, how would the firm produce 10, 20 and 40 sweaters. Use this information to produce a table showing the short run costs facing this firm for various levels of output (10, 20, 30, and 40 sweaters). The table should include quantity, total cost, average variable cost and marginal cost.
|
Bell system
: When the Bell System was originally broken up, the old AT&T was split into a new AT&T plus seven regional telephone companies. The specific reason for forcing the breakup was to increase the degree of competition in the telephone industry.
|
|
Investment and eventual recovery of working capital
: Some investment projects require that a company increase its working capital. Under the net present value method, the investment and eventual recovery of working capital should be treated as:
|
|
Probability-randomly selected adult is certain-education
: What is the probability that a randomly selected adult who is "certain" or has "little doubt" that God exists has no more than a high school education?
|
|
What is resistance and how is it relevant to suppression
: Resistance seems to be an inevitable biological phenomenon. What is resistance and how is it relevant to suppression of malaria (discuss two examples). Is resistance inevitable?
|
|
Long run costs of the various levels of production
: Using the results obtained above, derive a table for the long run costs of the various levels of production of sweaters (10, 20, 30, 40). The table should show: quantity, total cost, average cost and marginal cost.
|
|
We do not have a reliable method for determining the number
: We do not have a reliable method for determining the number of molar equivalents of bleach being added because commercial preparations vary in concentration and "oxidizing power
|
|
Calculate a person arterial compliance
: Calculate a person's arterial compliance if they have a systolic blood pressure of 139 mmHg, a diastolic blood pressure of 80 mmHg, cardiac output of 6 L/min, and heart rate of 60 beats/min. Express the answer in ml/mmHg (to one decimal place).
|
|
Gain recognize on the exchange
: Fred and Wilma exchanged equipment in a qualifying like-kind exchange. Fred gives up equipment with an adjusted basis of $14,000 (FMV = $15,000) in exchange for Wilma's equipment with a fair market value of $12,000 plus $3,000 cash. How much gain ..
|
|
Acronym nimby stands
: The acronym NIMBY stands for "Not In My Back Yard." This is a philosophy that maintains that individuals want to protect their local area against negative environmental impact.
|