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
why does gap between the ATC curve and the AVC curve decreases as the level of output increases

#question#.problems and its solution of microecnomics

I need help with tutoring session for an economic coursework

Determinants of the price elasticity of demand are explained below: 1. Number of close substitutes present within the market - The more and closer substitutes available in the

Explain how the price system eliminates a shortage. A deficiency means that quantity demanded is greater as compared to quantity supplied. This will lead to upward pressure on pr

Suggestions For the last 60 years the Bretton Woods institutions have played an essential role in ensuring global financial stability and fostering economic growth and develop



Government Policy Business Cycle Business cycles create instability in the economy. The period of boom or rising business activities is characterised by increase in output, emp

The Bushman Cinema is the only movie theatre located in the medium-size country town of Sleepy Hollow.  The owner wants to charge an admission fee of $10 per seat and past experien