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What implications would such a restriction on size have on a store's average costs? Discuss in terms of economies of scale and scope.
How does the expansion path change when the wage increases while the rental rate of capital stays constant?
What is the firm's long-run expansion path if it incurs no costs other than what it pays for paddles and nets, which it buys at market prices?
One box and one unit (12 ounces) of cereal produce one box of cereal. What is the expansion path? What is the cost function?
Use an isocost-isoquant diagram to explain the firms' response. (Hint: Alcohol-based flavors and other flavors may be close to perfect substitutes.)
Draw the corresponding cost curves, assuming constant returns to scale, and label the curves and the axes as thoroughly as possible.
What is the FED's job and how does the FED manage the money supply? How do banks create money?
If it is minimizing cost, explain why. If it is not minimizing cost, explain how the firm should change the ratio of inputs it uses to lower its cost.
What can you conclude about shipping costs if it is less expensive to produce baseballs in Costa Rica than in Georgia?
What effect will this subsidy have on the firm's choice of labor and capital to produce a given level of output?
How does the cost of producing a 1-cubic-foot crate compare to the cost of building an 8-cubic-foot crate if wood costs $1. How does cost vary with volume?
What is the greatest amount the publisher is willing to pay the composer per page of the composition?
Use math or figures to explain why a shopper's average costs are lower when buying at a single supermarket than from many stores.
Determine the marginal explicit cost to a corporation. What is the marginal opportunity cost to the corporation of an executive's personal flight?
There are certain fixed costs when you own a plane, Andre Agassi explained during a break in the action. Discuss whether Agassi's statement is reasonable.
That trip would cost $50, but she would be willing to pay up to $100. What is her opportunity cost of going to the aquarium?
Executives at Leonesse Cellars, a premium winery in Southern California. Use the concept of opportunity cost to help explain the differential shipping rates.
Calculate the marginal productivities of capital and labor for the production of electronics and equipment, tobacco, and primary metal using the information.
Why would you expect the average product of labor to be higher in Japan or the United States? Why?
How would the answer to the Challenge Solution change if we used the marginal product of labor rather than the average product of labor as our measure of labor.
Was this technological progress neutral? In a figure, show how these technological changes affected isoquants.
Does her production process necessarily illustrate decreasing returns to scale or diminishing marginal returns to labor?
If the output of the production process is measured as the weight of a projectile delivered, how does the amount of capital needed vary with output?
Draw a diagram with labor services on one axis and capital services on the other. Draw a circle in the middle of this figure.
During his first year at school, Ximing buys eight new college textbooks at a cost. Is Ximing better off, the same, or worse off after the price change? Why?