Consider the following fixed proportions technologies: Technology A uses 3 units of labour and 6 units of capital to produce 10 units of output. • Technology B uses 8 units of labour and 4 units of capital to produce 10 units of output. The firm has 10 units of labour and 10 units of capital. It can use either of the technologies, or combine the two in its production. The maximum amount of output the firm can produce is O fewer than 10 units

Consider the following fixed proportions technologies: Technology A uses 3 units of labour and 6 units of capital to produce 10 units of output. • Technology B uses 8 units of labour and 4 units of capital to produce 10 units of output. The firm has 10 units of labour and 10 units of capital. It can use either of the technologies, or combine the two in its production. The maximum amount of output the firm can produce is O fewer than 10 units

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 42P: A small company that shovels sidewalks and driveways has 100 homes signed up for its services this...

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Consider the following fixed proportions technologies: • Technology A uses 3 units of labour and 6 units of capital to produce 10 units of output. • Technology B uses 8 units of labour and 4 units of capital to produce 10 units of output. The firm has 8 units of labour and 8 units of capital. It can use either of the technologies, or combine the two in its production. The maximum amount of output the firm can produce is fewer than 10 units between 10 and 15 units petween 15 and 20 units between 20 and 25 units greater than 25 units
Consider the following fixed proportions technologies:Technology A uses 3 units of labour and 6 units of capital to produce 10 units of output.Technology B uses 8 units of labour and 4 units of capital to produce 10 units of output.The firm has 6 units of labour and 8 units of capital. lt can use either of the technologies, or combine the two in its production. The maximum amount of output the firm can produce is O fewer than 10 unitsO between 10 and 15 unitsO between 15 and 20 unitsO between 20 and 25 unitsO greater than 25 units
lexi and Tony own a food truck that serves only two items, street tacos and Cuban sandwiches. As shown in the table, Alexi can make 80 street tacos per hour but only 20 Cuban sandwiches. Tony is a bit faster and can make 100 street tacos or 30 Cuban sandwiches in an hour. Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able to produce.Output Per HourStreet Tacos Cuban SandwichesAlexi 80 20Tony 100 30a. For Alexi and for Tony, what is the opportunity cost of a street taco? Who has a comparative advantage in the pro-duction of street tacos? Explain your answer.b. Who has a comparative advantage in the production of Cuban sandwiches? Explain your answer.c. Assume that Alexi works 20 hours per week in the business. Assuming Alexi is in business on his own, graph the possible combinations of street tacos and Cuban sandwiches that he could produce in a week. Do the same for Tony.d. If Alexi devoted half of his time (10 out of 20 hours) to making street tacos…
Table 3-9 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. Hours Needed to Make 1 Amount Produced in 60 Hours Toaster Mixer Toaster Mixer Maya 6. 3 10 20 Miguel 10 15 6 12 Refer to Table 3-9. Assume that Maya and Miguel each has 60 hours available. If each person divides his/her time equally between the production of mixers and toasters, then total production is O a. 8 mixers and 16 toasters. O b. 3.5 mixers and 6 toasters. O c. 15 mixers and 9 toasters. O d. 20 mixers and 12 toasters.
Assume that Henry and Madeleine can switch between producing parasols and producing porcelain plates at a constant rate. Labor Hours Quantity Needed to Make 1 Plate 2 Produced in 36 Hours Parasol Parasol Plate 18 6 Henry Madeleine2 Assume that Henry and Madeleine each has 36 labor hours available. If each person divides his/her time equally between the production of parasols and plates, then total production is a.18 parasols and 6 plates. b.18 parasols and 7.5 plates. c. 16 parasols and 12 plates. d.36 parasols and 15 plates. 4 18 9
Alexi and Tony own a food truck that serves only twoitems, street tacos and Cuban sandwiches. As shownin the table, Alexi can make 80 street tacos per hourbut only 20 Cuban sandwiches. Tony is a bit faster andcan make 100 street tacos or 30 Cuban sandwiches inan hour. Alexi and Tony can sell all the street tacos andCuban sandwiches that they are able to produce.Output Per HourStreet Tacos Cuban SandwichesAlexi 80 20Tony 100 30a. For Alexi and for Tony, what is the opportunity cost of a street taco? Who has a comparative advantage in the pro-duction of street tacos? Explain your answer. b. Who has a comparative advantage in the production ofCuban sandwiches? Explain your answer. Assume that Alexi works 20 hours per week in thebusiness. Assuming Alexi is in business on his own, graphthe possible combinations of street tacos and Cubansandwiches that he could produce in a week. Do the samefor Tony.d. If Alexi devoted half of his time (10 out of 20 hours) tomaking street tacos and half of…
Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?
Table 3-7Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. Labor Hours Needed to Make 1 Pound of Pounds Produced in 24 Hours Meat Potatoes Meat Potatoes Farmer 6 4 4 6 Rancher 3 8 8 3 Refer to Table 3-7. Assume that the farmer and the rancher each has 24 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is Group of answer choices 6 pounds of meat and 4.5 pounds of potatoes. 5.5 pounds of meat and 8 pounds of potatoes. 12 pounds of meat and 9 pounds of potatoes. 5 pounds of meat and 5.5 pounds of potatoes.
Table 3-27 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. Labor Hours Needed to Make 1 Quantity Produced in 36 Hours Parasol Plate Parasol Plate Huang Min 16 18 16 14 18 19 Refer to Table 3-27. Assume that Huang and Min each has 36 labor hours available. Originally, each person divided his/her time equally between the production of parasols and plates. Now, each person spends all their time producing the good in which they have a comparative advantage. As a result, the total output of plates increased by O a 1.5. O b. 3. Oc. 9. Od. 0.
Given that Nathan has 10 acres and can grow 15 bales of hay or 40 bushels of corn on an acre, while Simon has 10 acres and can grow 20 bales of hay or 35 bushels of corn per acre. I am trying to come up with the equations to find out the maximum amount of produce they can jointly produce.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. Calculators Per Hour Computers Per Hour 10 6 Smith Jones 100 120 If Smith and Jones are dividing their time efficiently and producing more than 10 computers and fewer than 120 calculators per hour, then Smith will O produce only computers; produce only calculators O produce only computers; split his time between computers and calculators O split his time between computers and calculators; produce only computers O produce only calculators; produce only computers and Jones will
The table below shows the number of units of labour and capital used in 4 alternative production techniques for producing 1000 widgets per month. Technique A В Labour 20 40 46 35 Сaptal 46 39 21 59 If the price of labour is $9 and the price of capital is $6, which production technique minimizes the costs of producing 1000 units of output? ..... O A. A О В. В ОС. D O D. C O E. Any of the techniques have the same cost.