What is a prisoners dilemma, Microeconomics

1. Ayanna grows herbs. Last year she grew 2,000 pounds of herbs in a year while using 250 square feet of land and 1 worker. This year she doubled her land to 500 square feet, doubled her workers to 2, and grew 4,500 pounds of herbs. She sells her rare, organic herbs for $50 a pound. She pays her a worker $25,000 a year and rents her land for $100 per square foot for a year. These are her only costs.

a.  What was Ayanna's total cost last year and this year?

b.  What was Ayanna's average total cost last year and this year?

c.  Did Ayanna experience economies or diseconomies of scale?

2. a. What is a prisoner's dilemma?

b. Why would a firm in a monopolistically competitive industry advertise?

 

Posted Date: 4/5/2013 6:01:02 AM | Location : United States







Related Discussions:- What is a prisoners dilemma, Assignment Help, Ask Question on What is a prisoners dilemma, Get Answer, Expert's Help, What is a prisoners dilemma Discussions

Write discussion on What is a prisoners dilemma
Your posts are moderated
Related Questions
Optimum currency area: An optimum currency area (OCA), also known as an optimal currency region (OCR), is a geographical region in which it would maximize economic efficiency

price quantity 10 60 20 70 30 90 40 110 50 130 derived a supply function for the relation between price and quantity

How to I calculate the break-even point per unit in dollar amount and then determine whether there will be a profit or loss? Such as if the fixed costs were $75000. The variable co

Impact of Economic Reforms on Labour: It would be of interest to study the industrial relations scenario in the pre-reform and post-reform period. Data provided in table 8.4 r

What is Hicksian demand function? Hicksian Demand Function: The solution of expenditure function that is the function of (p, u) is denoted by h(p, u) and termed as the Hicks

The act of production involves the transformation of inputs into output. Production is a transformation of physical inputs into physical inputs into physical output. The output is

Program Spending: Government spending that is undertaken to provide useful public programs. Program spending includes both transfer payments which are intended to supplement the in

1.  National Marine Fisheries Service is considering closing a large area of federal waters to fishing in Alaska due to negative interactions of fishing with endangered Steller sea

What are the properties of the profit function? Properties of the Profit Function: The properties specified below follow solely by the assumption of profit maximization. No

Aggregate household indebtedness: This is the purchasing power of the sum of money outstanding that households have borrowed and are currently obligated to repay. If household