What is the opportunity cost of the eighth computer

Assignment Help Econometrics
Reference no: EM13222794

Suppose either computers or televisions can be assembled with the following labor inputs:

Units produced 1 2 3 4 5 6 7 8 9 10
Total labor used 3 7 12 18 25 33 42 54 70 90

(a) Draw the production possibilities curve for an economy with 54 units of labor.

(b) What is the opportunity cost of the eighth computer?

(c) Suppose immigration brings in 36 more workers. Redraw the production possibilities curve to reflect this added labor. Label the new curve P90.

(d) Suppose advancing technology (e.g., the miniaturization of electronic circuits) increases the productivity of the 90-laborer workforce by 20 percent. Draw a third production possibilities curve (PT) to illustrate this change.

Reference no: EM13222794

Questions Cloud

Compute the centerline for the r-chart : Compute the centerline for the x-bar chart. Compute the centerline for the R-chart.
What is the process capability index for vaxidene : What is the process capability index for Vaxidene? Is the acceptable? Explain.
Compute the percentage idle time for the assignment : Six tasks, with times and precedence requirements as shown in the following table, are to be assigned to workstations. The desired output is 160 units per 8 hour day.
What is the breakeven in dollars : GX Corporation is developing a new innovative product. To launch the product, fixed costs are set at $140,000. Variable Costs are set at $75. They desire to break even by selling 1,000 units.
What is the opportunity cost of the eighth computer : Suppose advancing technology (e.g., the miniaturization of electronic circuits) increases the productivity of the 90-laborer workforce by 20 percent. Draw a third production possibilities curve (PT) to illustrate this change.12
What is the probability that the bx tire will last beyond : What is the probability that the "BX" tire will last beyond 46,000 miles?
Aggregate planning for a bottling company : Which production strategy should the production managers choose based on a total cost minimisation objective and what information about this aggregate plan should be shared with various supply chain partners and why?
Define what is the concentration of oh : What is the concentration of OH (in M) initially present in a 12 M NH solution? Hint: The K of NH is 1.8x10. Express your answer to two significant figures.
What will happen in the long run to the price of fertilizer : Assuming there is no change in demand or the firms cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, quantity supplied by each firm, and the total quantity supplied to the market.

Reviews

Write a Review

Econometrics Questions & Answers

  Determine how should the input combination be adjusted

Hernandez Corp. uses two variable inputs, X and Y, to produce its final product, canoes. Its engineering department has estimated the marginal product functions for inputs X and Y as follows: MPx = Y/X MPy = 4 X/Y Where X and Y denote, respectivel..

  What would the profit maximizing price and quantity be

A monopolist can produce its output at a constant average and constant marginal cost of: ATC = MC = 5 The monopoly faces a demand curve given by the following function: Q= 53-P And a marginal revenue curve that is given by the function: MR = 53 - ..

  Survey to learn the buying intentions

May Brothers Department Store has constructed a survey to learn purchasing intentions of a sample of sixty-two department store customers.

  What is the cost differential measured in todays dollars

Ethel and Fred have found their "dream house" and it has a purchase price of $250,000. Assume that they make a $50,000 down payment but must finance the remainder with a mortgage. They are presented with two mortgage options. Option 1 is a 30-year..

  What are the opportunity costs and the mc

Suppose you currently earn $23,000 a year. You are considering a job that will increase your lifetime earnings by $230,000 but that requires an MBA. The job will mean also attending business school for two years at an annual cost of $28,000.

  Compute the amount of goodwill of giant bakery

Elizabeth Pie Company has been in business for 50 years and has developed a large group of loyal restaurant customers. Giant Bakery Inc. has made an offer to buy Elizabeth Pie Company for $5,000,000. The book value of Elizabeth Pie's recorded asse..

  Calculate the equilibrium level of income or real gdp

ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30..

  What are the cournot equilibrium quantities

Initially, three firms produce homogeneous products. Consider a market with inverse demand per period given by P = 140 - Q. Each firm faces a marginal cost of 20 per unit. As well, each firm faces a fixed cost per period of 500.

  What is the maximum increase in the money supply

First bank has total deposits of $2,000,000 legal reserves of $220,000. If the reserve requirement is 10 percent, what is the maximum loan that First bank can make, and what is the maximum increase in the money supply.

  Is it beneficial for the company to do the campaign

Assume that a monopolist considering to spend 500.000 usd on large campaign to promote the their products.The demand curves are defined by p = 150 - 3q, where q is the output-quantity in 1000-usd. By executing the campaign the firm expects the new de..

  Explain when four customers are selected at random

The Town-Pump service station has performed an analysis of its customers and found that 85% pay on credit and the rest pay cash. We are interested in finding the probability distribution of the random variable, X.

  Calculate what happens to the income of workers

What is each orchard's labor demand as a function of the daily wage W? What is the market's labor demand?b. Ectenia has 200 workers who supply their labor inelastically. Solve for the wage W. How many workers does each orchard hire? How much profit..

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