Q: Explain why the marginal rate of technical substitution is likely to
Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.
See AnswerQ: Suppose the demand curve for a product is given by Q
Suppose the demand curve for a product is given by Q = 10 − 2P + PS, where P is the price of the product and PS is the price of a substitute good.The price of the substitute good is $2.00. a.Suppose...
See AnswerQ: Consider a lottery with three possible outcomes: • $
Consider a lottery with three possible outcomes: • $125 will be received with probability .2 • $100 will be received with probability .3 • $50 will be received with probability .5 a.What is the exp...
See AnswerQ: The cost of flying a passenger plane from point A to
The cost of flying a passenger plane from point A to point B is $50,000.The airline flies this route four times per day at 7 AM, 10 AM, 1 PM, and 4 PM.The first and last flights are fulfilled l to cap...
See AnswerQ: Why is the marginal product of labor likely to increase initially
Why is the marginal product of labor likely to increase initially in the short run as more of the variable input is hired?
See AnswerQ: As the owner of a family farm whose wealth is $
As the owner of a family farm whose wealth is $250,000, you must choose between sitting this season out and investing last year’s earnings ($200,000) in a safe money market fund paying 5.0 percent or...
See AnswerQ: Japanese rice producers have extremely high production costs, due in
Japanese rice producers have extremely high production costs, due in part to the high opportunity cost of land and to their inability to take advantage of economies of large-scale production.Analyze t...
See AnswerQ: Assume that the marginal cost of production is increasing.Can
Assume that the marginal cost of production is increasing.Can you determine whether the average variable cost is increasing or decreasing?Explain.
See AnswerQ: Tickets to a rock concert sell for $10.But
Tickets to a rock concert sell for $10.But at that price, the demand is substantially greater than the available number of tickets.Is the value or marginal benefit of an additional ticket greater than...
See AnswerQ: In long-run equilibrium, all firms in the industry
In long-run equilibrium, all firms in the industry earn zero economic profit.Why is this true?
See Answer
