Questions from General Economics

Q: Which of the following are short-run and which are long

Which of the following are short-run and which are long-run adjustments? a. Wendy’s builds a new restaurant. b. Harley-Davidson Corporation hires 200 more production workers. c. A farmer increases th...

Q: Explain why an economy’s output, in essence, is also its

Explain why an economy’s output, in essence, is also its income.

Q: A firm has fixed costs of $60 and variable costs as

A firm has fixed costs of $60 and variable costs as indicated in the table at the bottom of this page. Complete the table and check your calculations by referring to problem 4 at the end of Chapter 10...

Q: Indicate how each of the following would shift the (1

Indicate how each of the following would shift the (1) marginal-cost curve, (2) average-variable-cost curve, (3) average-fixed-cost curve, and (4) average-total-cost curve of a manufacturing firm....

Q: True or false. The U shape of the long-run

True or false. The U shape of the long-run ATC curve is the result of diminishing returns.

Q: Suppose a firm has only three possible plant-size options,

Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the accompanying figure. What plant size will the firm choose in producing (a) 50, (b) 130, (c) 160...

Q: Explain graphically how indifference analysis can be used to derive a demand

Explain graphically how indifference analysis can be used to derive a demand curve.

Q: Gomez runs a small pottery firm. He hires one helper at

Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in...

Q: Imagine you have some workers and some hand-held computers that

Imagine you have some workers and some hand-held computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can...

Q: You are a newspaper publisher. You are in the middle of

You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 millio...