Question
i need help showing the calculation and how to show the graph in this two exercises Q1. you wake up on the planet Flatz after
i need help showing the calculation and how to show the graph in this two exercises
Q1. you wake up on the planet Flatz after being abducted for economic research.
The Flatzies give you following resources to survive - 10,000 Flats.
Flats are universally accepted on Flatz for acquiring goods and services.
The saddening thing with Flats is that 50% of your Flats vanish at sunrise.
a) Construct graphs of your consumption opportunity set (decision line/budget constraint) for Day 1 to Day 2, and Day 2 to Day 3
b) If you are offered a return ticket to Earth on Day 3 at a cost of 2500 Flats, what is the maximum amount of Flats you can spend on Day 1 to leave you with enough Flats to purchase the ticket to return home on Day 3?
Show your calculations and construct the graphs showing your consumption allowing you to return home.
Q 2. WTH Inc. exhibits the following production relationship between costs and quantity of Good X:
Total Quantity = 1, Marginal Cost = $200;
Total Quantity = 2, Marginal Cost = $ 40;
Total Quantity = 3, Marginal Cost = $ 30;
Total Quantity = 4, Marginal Cost = $130;
Total Quantity = 5, Marginal Cost = $175;
Provide the Cost Table of all relevant costs to construct the Graph of WTH's
Supply Curve for Good X. Provide the graph of Good X's Supply Curve,
point out, and give an explanation of the quantity and price of Good X you expect the firm to start supplying (start up/shut down point) Good X to the market.
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