Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A family farms corn on their land. They must decide how to produce corn: they can harvest the crop entirely with hours of their own labor (z1), they can harvest entirely by machine (z2), or they can use a combination of labor hours and machine hours. Using only labor is very time-consuming and results in waste because it is impossible to harvest all the corn by hand before it begins to spoil. Using only machine is also problematic because the machines can’t access some parts of the farm. The production function relates the amount of each input used to total corn production y. The production function is y = f(z1, z2) = z 1^1/2 z2^1/2 . The firm faces the following prices. The price of corn p is $3/pound. The price of an hour of labor is $w1 = 1. The price of a machine hour is $w2 = 4.
(a) Does the firm experience diminishing marginal product of labor? Solve for the expression for marginal product of labor.
(b) In the short run, the farm’s number of machine hours available is fixed. The farm rents machine time from an equipment rental company and has signed a contract for z2 = 64 machine hours. How many pounds of corn y should the farm produce and how many hours of labor z1 should the farm use to produce it?
(c) Graph the firm’s short-run production function and isoprofit lines. Show the profit-maximizing production point on the graph.
(d) What are the slopes of the isoprofit lines associated with this problem?
(e) How would an increase in the output price p affect the optimal choice of input use in the short run? Explain and show with a graph
Comment on the following quotation: "One way that a minimum wage could result in expanded employment is if the government sets the minimum below the market equilibrium wage."
A consumer with convex indifference curves moves along her budget line, closer and closer to the horizontal axis. As she is moving
What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor? Illustrate these factors in terms of the production possibilities curve.
Corporate executives are pressured between conflicting interests of internal and external stakeholders. Provide a specific example of such a conflict. How can the conflict best be resolved?
Distinguish between the resource market and product market in the circular flow model. In what way are businesses and households both sellers and buyers in this model.
If international trade increases prices, employment, and wages among more competitive and efficient producers but has the opposite effects among less competitive and efficient producers, why should anyone listen to opponents of international trade? E..
As we become more aware of our impact on the environment, citizens and legislators are faced with decisions which impact local, state, and national economies. For example, government restrictions on construction due to effects on endangered species o..
Under what conditions has the Court ruled that restrictions of commercial speech were constitutional? What is the Court’s four-prong test?
Explain the unemployment rate in Tappania is higher now than is has been in 50 years. Can both of those statements be true at the same time.
Illustrate what price also quantity would prevail after the imposition of the tax
suppose that the economy is currently in a recession. If policy-makers take no action, explain how will the economy evolve over time. Explain in words and using an aggregate-demand/ aggregate-supply diagram.
A proposal has been advanced to limit advertising of pharmaceutical prices to prevent unfair pricing by national chains. You estimate that limits on price advertising will change the price elasticity of demand from -5.63 to -4.43. From the pharmacis..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd