Questions from Microeconomics

Q: Would a business be expected to survive in the long run if

Would a business be expected to survive in the long run if it earned a positive accounting profit but a negative economic profit? Briefly explain.

Q: What is the law of diminishing returns? Does it apply in

What is the law of diminishing returns? Does it apply in the long run?

Q: Fill in the missing values in the following table.

Fill in the missing values in the following table.

Q: Use the numbers from problem 3.4 to draw one graph

Use the numbers from problem 3.4 to draw one graph that shows how total output increases with the quantity of workers hired and a second graph that shows the marginal product of labor and the average...

Q: A student looks at the numbers in Table 11.3 on

A student looks at the numbers in Table 11.3 on page 371 and draws this conclusion: The marginal product of labor is increasing for the first two workers hired, and then it declines for the next four...

Q: Briefly explain whether you agree with the following argument: Adam

Briefly explain whether you agree with the following argument: Adam Smith’s idea of the gains to firms from the division of labor makes a lot of sense when the good being manufactured is something com...

Q: Sally looks at her college transcript and asks you, “How

Sally looks at her college transcript and asks you, “How is this possible? My grade point average for this semester’s courses is higher than my grade point average for last semester’s courses, but my...

Q: What is a production possibilities frontier? How can we show efficiency

What is a production possibilities frontier? How can we show efficiency on a production possibilities frontier? How can we show inefficiency? What causes a production possibilities frontier to shift o...

Q: Is it possible for a firm to experience a technological change that

Is it possible for a firm to experience a technological change that would increase the marginal product of labor while leaving the average product of labor unchanged? Explain.

Q: Small business owner Jay Goltz described several decisions he made to reduce

Small business owner Jay Goltz described several decisions he made to reduce the fixed costs of his businesses, including replacing halogen lamps with LED lamps. Goltz noted, “I’m guessing that many b...