User Account

All Pages

Draw the contract curve for efficient production

Assignment Help Microeconomics
Reference no: EM131774192

Question: Suppose that there are two industries, one producing X and the other producing Y, which each use both capital K and labor L in the production process. The marginal rate of technical substitution in the Y industry is MRTS =4K /3L and in the X industry is MRTS =7K /2L . Define pareto efficiency and Y X y y x x determine the relationship between the capital-labor ratios in the two industries when production is efficient. Draw the contract curve for efficient production and explain the relationship of the contract curve to the production possibilities frontier.

Reference no: EM131774192

Questions Cloud

Activities section of the statement of cash flows : Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method.
How foot locker press release relates to earnings quality : Foot Locker said earnings from continuing operations were $38 million, Discuss how Foot Locker's press release relates to its earnings quality
Ethical principles that they set forth in employment manuals : Have the leaders within that organization followed the ethical principles that they set forth in their employment manuals?
What is needed to determine the operating income : What is needed to determine the operating income? Would the contribution margin, break-even point and operating income change if the compensation method.
Draw the contract curve for efficient production : Draw the contract curve for efficient production and explain the relationship of the contract curve to the production possibilities frontier.
Discuss cost of operations cash flow analysis : Pertinent financial information for the reviewer includes all of the following except: Cost of operations Cash flow analysis
How is the break-even point determined : What is taken into consideration to figure out the contribution margin?
Explain conditions for the economy to be pareto efficient : Suppose that there are two industries and two consumers. Each industry uses both capital K and labor L in the production process, and each produces a different.
Prepare entries for selzer using expense warranty approach : Selzer Equipment Company sold 533 Rollomatics during 2010 at $6,840 each. Prepare 2010 entries for Selzer using the expense warranty approach

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd