All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Tutor New

Search
Sign In
Register

study help
business
introduction to microeconomics

Questions and Answers of Introduction To Microeconomics

Trapper Joe, the fur trader, has found that his production function in acquiring pelts is given bywhere q = the number of pelts acquired in a day, and H = the number of hours Joe’s employees spend
The long-run total cost function for a firm producing skateboards iswhere q is the number of skateboards per week.a. What is the general shape of this total cost function?b. Calculate the average
Suppose that the Acme Gumball Company has a fixed proportions production function that requires it to use two gumball presses and one worker to produce 1,000 gumballs per hour.a. Explain why the cost
A widget manufacturer has an infinitely substitutable production function of the form q = 2K + L.a. Graph the isoquant maps for q = 20, q = 40, and q = 60.What is the RTS along these isoquants?b. If
Use Figure 8.1 to explain why a rise in the price of an input must increase the total cost of producing any given output level. What does this result suggest about how such a price increase shifts
Taxes can obviously affect firms’ costs. Explain how each of the following taxes would affect total, average, and marginal cost. Be sure to consider whether the tax would have a different effect
Beth is a mathematical whiz. She has been reading this chapter and remarks, “All this short-run/long-run stuff is a trivial result of the mathematical fact that the minimum value for any function
Late Bloomer is taking a course in microeconomics.Grading in the course is based on 10 weekly quizzes, each with a 100-point maximum. On the first quiz, Late Bloomer receives a 10.In each succeeding
Leonardo is a mechanically minded person who always builds things to help him understand his courses. To help in his understanding of average and marginal cost curves, he draws a TC-q axis pair on a
The distinction between marginal and average cost can be made with some simple algebra. Here are three total cost functions:i. TC = 10q ii. TC = 40 + 10q iii. TC = 240 + 10q.a. Explain why all three
Suppose a firm had a production function with linear isoquants, implying that its two inputs were perfect substitutes for each other. What would determine the firm’s expansion path in this case?
Explain why the assumption of cost minimization implies that the total cost curve must have a positive slope:An increase in output must always increase total cost.
Farmer McDonald was heard to complain, “Although my farm is still profitable, I just can’t afford to stay in this business any longer. I’m going to sell out and start a fast-food business.”
Musk Airlines is thinking of buying a new plane for its shuttle service. Why does the economist’s notion of cost suggest that Elon Musk should consider the plane’s price in deciding whether it is
What is so “special” about banks and their connection to the financial system? Should banks be subject to more regulations than should be applied to firms in other industries? What would be the
How will the extent of the increase in McDonald’s costs depend on whether the firm is able to substitute capital for labor?
How will the extent of the increase in McDonald’s costs depend on whether labor costs account for a large or a small fraction of the firm’s total costs?
Standing in line at a theme park can certainly reduce the enjoyment of your visit. What are some of the ways that theme park operators have created incentives to use popular attractions at off-peak
Some commuter groups argue that congestion tolls are unfair because they hit workers who have to commute at certain hours rather than those who drive off-peak in their spare time. Wouldn’t a system
What would happen to this figure if the firm increased its short-run level of capital beyond K*?
Why does SMC exceed MC for output levels greater than q*?
Why does SAC exceed AC for every level of output except q*?
If small farms are inefficient, why haven’t these disappeared? Could the localvore movement or the lure of the traditional farming lifestyle provide explanations?
Is the minimum efficient scale for an industry constant over time? Choose one industry from the table and speculate on how technology may increase or decrease the minimum efficient scale in the
Explain how this example illustrates the relationship between average and marginal costs studied in this section.
What will you have to score on the final 3 quizzes in the course to get your average back to 80?
What will happen to your average for the course if your grade falls to 60 on each of the next 2 quizzes?
Would a firm that followed socially responsible policies be violating its duty to its shareholders? Under what conditions might this be the case? When might it not be the case?
Explain how different types of social responsibility policies might cause firms to opt for input choices such as A or C in Figure 1.
How would the possibility that equipment may become obsolete be handled in unregulated markets? That is, how could this possibility be reflected in an unregulated firm’s economic costs?
Many regulated firms believe that they had an “implicit contract” with state regulators to ensure a fair return on their investments. What kind of incentives would such a contract provide to the
One way economists measure total factor productivity is to use a Cobb-Douglas production function of the form q 5 A(t)Ka L12a, where A(t) is a term representing technical change and a is a positive
The production function for puffed rice is given bywhere q is the number of boxes produced per hour, K is the number of puffing guns used each hour, and L is the number of workers hired each hour.a.
For the Cobb-Douglas production function in Problem 7.7, it can be shown (using calculus) that MPK 5 aAKa21 Lb MPL 5 bAKa Lb21.If the Cobb-Douglas exhibits constant returns to scale(a 1 b 5 1), show
The production function q 5 AKa Lb(where A,a, b $ 0) is called a Cobb-Douglas production function. This function is widely used in economic research. Using the function, show the following:a. The
Power Goat Lawn Company uses two sizes of mowers to cut lawns. The smaller mowers have a 22-inch deck.The larger ones combine two of the 22-inch decks in a single mower. For each size of mower, Power
Grapes must be harvested by hand. This production function is characterized by fixed proportions—each worker must have one pair of stem clippers to produce any output. A skilled worker with
Suppose that the hourly output of chili at a barbecue (q, measured in pounds) is characterized bywhere K is the number of large pots used each hour and L is the number of worker hours employed.a.
Digging clams by hand in Sunset Bay requires only labor input. The total number of clams obtained per hour (q)is given bywhere L is labor input per hour.a. Graph the relationship between q and L.b.
Frisbees are produced according to the production function q 5 2K 1 L, where q 5 output of Frisbees per hour, K 5 capital input per hour, L 5 labor input per hour.a. If K 5 10, how much L is needed
Imagine that the production function for tuna cans is given by q 5 6K 1 4L, where q 5 output of tuna cans per hour K 5 capital input per hour L 5 labor input per hour.a. Assuming capital is fixed at
Capital and labor are used in fixed proportions to produce an airline flight. It takes two workers (pilots) and one plane to produce a trip. Safety concerns require that every plane has two pilots.a.
Continuing the prior question, suppose that Universal Gizmo devises a new plant design that uses 15 gizmo presses and 5 workers also to produce 100 gizmos per day. How would you construct an isoquant
Universal Gizmo (UG) operates a large number of plants that produce gizmos using a special technology. Each plant produces exactly 100 gizmos per day using 5 gizmo presses and 15 workers. Explain why
Answer question 5 using two specific production functions as examples:a. A fixed-proportions production functionb. A Cobb-Douglas production function of the form(See Problems 7.4, 7.7, and 7.8 for a
Marjorie Cplus wrote the following answer on her micro examination: “Virtually every production function exhibits diminishing returns to scale because my professor said that all inputs have
A 2019 news headline read, “Stalled Recovery Hits Productivity.” Assuming that the “productivity” referred to in this headline is the customary “average output per worker hour” that is
Donnie Dingbat is the manager of a hot dog stand that uses only labor and capital to produce hot dogs. The firm usually produces 1,000 hot dogs a day with five workers and four grills. One day a
In what ways are firms’ isoquant maps and individuals’indifference curve maps based on the same idea? What are the most important ways in which these concepts differ?
Provide a brief description of the production function for each of the following firms. What is the firm’s output?What inputs does it use? Can you think of any special features of the way
Who experiences the gains in productivity growth spawned by computers? How would you measure such gains?
Exactly how does computer technology increase productivity? How would you show this with a production function?
Give one reason why this production function is probably not a very reasonable one.
What does the form of this production function assume about the substitutability of L for K ?
Does this production function exhibit increasing, constant, or decreasing returns to scale?
Laws that limit interstate sale of wine over the Internet were relaxed significantly as a result of a Supreme Court decision in 2005. How would you expect this to affect the scale of production in
How do transportation costs affect attaining economies of scale in brewing? How might a large beer producer decide on the optimal number of breweries to operate?
The government continues to offer a wide variety of incentives for people to install alternative energy devices such as solar collectors or wind power generators. In many cases, these incentives can
What does the “one hole” isoquant look like? How much time would it take a worker to dig a hole if the worker used a small shovel for half the hole, then switched to the large shovel?
What is the RTS of labor time for shovel size?
If Japanese industrial relations practices were also important in making Japanese auto firms more efficient, why didn’t U.S. firms adopt these aspects of the Japanese“model”?
Why did it take so long for U.S. automakers to adopt Japanese techniques? Couldn’t they just have visited Japan during the 1970s, say, and brought what they saw home?Why did it take the arrival of
How does a family with more than one adult decide how to allocate each person’s work time between home production and work in the market?
If people produce goods such as housing services and health for their own consumption, how should we define the “prices” of these goods in the model of utility maximization used in prior chapters?
Consider the Tragedy of the Commons game from the chapter with two shepherds, A and B, where SA and SB denote the number of sheep each grazes on the common pasture. Assume that the benefit per sheep
Three department stores, A, B, and C, simultaneously decide whether or not to locate in a mall that is being constructed in town. A store likes to have another with it in the mall since then there is
Find the pure-strategy Nash equilibrium or equilibria of the following game with three actions for each player. B Left Center Right Up 4,3 5,-1 6,2 A Middle 2,1 7,4 3,6 Down 3,0 9,6 0,8
The following game is a version of the Prisoners’ Dilemma, but the payoffs are slightly different than in Figure 6.1.a. Verify that the Nash equilibrium is the usual one for the Prisoners’
Return to the Group Science Project in Figure 6.7.Compute the mixed-strategy Nash equilibrium under the following modifications and compare it to the one computed in the text. Draw the corresponding
Two classmates A and B are assigned an extra-credit group project. Each student can choose to Shirk or Work. If one or more players choose Work, the project is completed and provides each with extra
Consider the Social Network game discussed in Application 6.3: Big-Tech Dominance, but shift the focus to the game (provided in the following table) between the two networks, Facebook and MySpace,
Return to the game given by the payoff matrix in Problem 6.1.a. Write down the extensive form for the simultaneousmove game.b. Suppose the game is now sequential move, with A moving first and then B.
Suppose A can somehow change the game in Problem 6.1 to a new one in which his payoff from Up is reduced by 2, producing the following payoff matrix.a. Find the Nash equilibrium or equilibria.b.
Consider a simultaneous game in which player A chooses one of two actions (Up or Down), and B chooses one of two actions (Left or Right). The game has the following payoff matrix, where the first
Choose a setting from student life. Try to model it as a game, with a set number of players, payoffs, and actions. Is it like any of the classic games studied in this chapter?
In the Tragedy of the Commons, we saw how a small change in A’s benefit resulted in a shift in A’s best response function and a movement along B’s best-response function. Can you think of other
Which of these relationships would be better modeled as involving repetitions and which not, or does it depend?For those that are repeated, which are more realistically seen as involving a definite
In the sequential games such as the sequential Group Science Project, why does the Nash equilibrium allow for outcomes with noncredible threats? Why does subgameperfect equilibrium rule them out?
The Group Science Project is a coordination game. What coordination games arise in your experience? How do you go about solving coordination problems?
Why is the Prisoners’ Dilemma a “dilemma” for the players involved? How might they solve this dilemma through pregame discussions or postgame threats? If you were arrested and the D.A. tried
Which of the following activities might be represented as a zero-sum game? Which are clearly not zero sum?a. Flipping a coin for $1b. Playing blackjackc. Choosing which candy bar to buy from a
Why are Nash equilibria identified by the strategies rather than the payoffs involved?
What is the difference between an action and a strategy?
In game theory, players maximize payoffs. Is this assumption different from the one we used in Chapters 3 and 4?
Is it sensible to model the terrorist as wanting to maximize expected damage? Instead, the terrorist may prefer to attack “high-visibility” targets, even if this means lower expected damage, or
The U.S. government has considered analyzing banking transactions to look for large, suspicious movements of cash as a screen for terrorists. What are the pros and cons of such a screen? How would
How would you construct an experiment involving the Battle of the Sexes? What theoretical issues might be interesting to test with your experiment?
As an experimenter, how would you choose the following aspects of experimental design? Are there any trade-offs involved?a. Size of the payoffsb. Ability of subjects to see opponentsc. Playing the
Up to now, Big-Tech firms have been allowed to acquire startups, integrating their functionality into the larger platform.Discuss the pros and cons of an antitrust policy that prevents such
How would you modify the payoffs in Figure 1 to reflect the possibility that one of the companies provides a better network? Is there a stark enough change to the payoffs that could deliver a unique
In general, can a game have a mixed-strategy Nash equilibrium if a player has a dominant strategy? Why or why not?
In the Group Science Project, does either player have a dominant strategy?
Economists have studied mixed strategies in other sports, for example whether a tennis serve is aimed to the returner’s backhand or forehand.2 Can you think of other sports settings involving mixed
Verify the mixed-strategy Nash equilibrium computed above for the penalty-kick game following the methods used for the Group Science Project.
Can you think of a favorite movie involving a strategic situation? How would you model it as a game?
After gaining experience representing games such as Matching Pennies in a normal-form matrix, return to this application and try to represent a duel in that way with two players and two actions. Done
Use a separate diagram to analyze whether a risk-neutral person would ever want to purchase health insurance and under what conditions if so.
Without looking at Figure 5A.3, see if you can draw your own diagram to illustrate the benefits of, say, health insurance.
Given your answer to part 2, can you explain why AE and EU3 have the same slope at point E ? (This question is relatively hard.)
In general, what determines the slope of the indifference curve EU3?

Showing 200 - 300 of 2613

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved