New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
microeconomics
Microeconomics 9th Edition David Colander - Solutions
3. Adam Smith argued that at birth most people were similarly talented, and that differences in individual abilities, and hence productivity, are largely the effect of the division of labor, not its cause. What implications does that insight have for economic policy, and for the way we should treat
2. The chapter points out that “businesses give enormous weight to experience,” or learning by doing. Empirical evidence suggests that, in surveys and applications, women tend to report the nature of their jobs in far less detail than do men.a. How might this contribute to differences in
1. The text presents costs as if a firm could look them up in a book.a. How do you believe a firm’s true costs are revealed?b. Is this an optimal method of finding out costs?(Austrian)
17. If a firm is experiencing learning by doing, what is likely true about the long-run average total cost curve? Explain your answer.
16. How does learning by doing affect average total costs? (LO12-4)
15. A student has just written on an exam that technological change will mean that the cost curve is downward-sloping.Why did the teacher mark it wrong? ( LO12-4)
14. True or false? Because entrepreneurs are motivated by opportunities to sell an item at a price higher than the average cost of producing it, they do not start for-benefit firms. Explain your answer. (LO12-3)
13. Your average total cost is $40; the price you receive for the good is $12. Should you keep on producing the good?Why? ( LO12-3)
12. What is the role of the entrepreneur in translating cost of production into supply? ( LO12-3)
11. Where along the long-run average total cost curve will an efficient firm try to produce in the long run? (LO12-2)
10. Draw a short-run marginal cost curve, short-run average cost curve, and long-run average total cost curve for an efficient firm producing where there are diseconomies of scale. (LO12-2)
9. Why are long-run costs always less than or equal to than short-run costs? (LO12-2)
8. Sea lions have been depleting the stock of steelhead trout.One idea to scare sea lions off the Washington state coast was to launch fake killer whales, predators of sea lions.The cost of making the first whale is $16,000—$5,000 for materials and $11,000 for the mold. The mold can be reused to
7. Draw a long-run average total cost curve. (LO12-2)a. Why does it slope downward initially?b. Why does it eventually slope upward?c. How would your answers to a and b differ if you had drawn a short-run cost curve?d. How large is the fixed-cost component of the long-run cost curve?e. If there
6. In the early 2000s car makers began to design vehicles’chassis, engine, and transmissions so that different models could be produced on the same assembly line. Within the first year of implementing the plan, Ford cut production costs by $240 per car. (LO12-2)a. What cost concept was Ford
5. Why could diseconomies of scale never occur if production relationships were only technical relationships?
4. A student has just written on an exam that, in the long run, fixed cost will make the average total cost curve slope downward. Why will the professor mark it incorrect? ( LO12-2)
3. A dressmaker can sew 800 garments with 160 bolts of fabric and 3,000 hours of labor. Another dressmaker can sew 800 garments with 200 bolts of fabric and 2,000 hours of identical labor. Fabric costs $100 a bolt and labor costs$10 an hour. ( LO12-1)a. Is it possible for both methods to be
2. One farmer can grow 1,000 bushels of corn on 1 acre of land with 200 hours of labor and 20 pounds of seed.Another farmer can grow 1,000 bushels of corn on 1 acre of land with 100 hours of labor and 20 pounds of seed. ( LO12-1)a. Could both methods be technically efficient?b. Is it possible that
1. What is the difference between technical efficiency and economic efficiency? ( LO12-1)
Q-10 As the owner of the firm, Jim pays himself $1,000. All other expenses of the firm add up to$2,000. What would an economist say are the total costs for Jim’s firm?
Q-9 Does learning by doing cause the average cost curve to be downward-sloping?
Q-8 What is the di f ference between an economy of scope and an economy of scale?
Q-7 Why is the role of the entrepreneur central to the production process in the economy?
Q-6 Why is the long-run average total cost curve generally considered to be a U-shaped curve?
Q-5 Why is the short-run average cost curve a U-shaped curve?
Q-4 If production involved only technical relationships and had no social dimension, what would the long-run average total cost curve look like?
Q-3 Why are larger production runs often cheaper per unit than smaller production runs?
Q-2 Why does China use production techniques that require more workers per acre of land than does the United States?
Q-1 True or false? If a process is economically efficient, it is also technically efficient. Explain your answer.
LO12-4 Discuss some of the problems of using cost analysis in the real world
LO12-3 Explain the role of the entrepreneur in translating cost of production to supply.
LO12-2 Explain how economies and diseconomies of scale influence the shape of long-run cost curves.
LO12-1 Distinguish technical efficiency from economic efficiency.
5. If machines are variable and labor fixed, how will the general shapes of the short-run average cost curve and marginal cost curve change?
4. Say that neither labor nor machines are fixed but that there is a 50 percent quick-order premium paid to both workers and machines for delivery of them in the short run. Once you buy them, they cannot be returned, however.What do your short-run marginal cost and short-run average total cost
3. The following cell-phone offer by Sprint is typical of what one can get on a cell phone plan: 4,000 free minutes for $39.99 a month. The fine print says that only 350 of those minutes are anytime minutes; the remaining are restricted to evening and weekend usage. If you go over your allotted
2. If you increase production to an infinitely large level, the average variable cost and the average total cost will merge. Why?
1. “There is no long run; there are only short and shorter runs.” Evaluate that statement.
5. Walmart, the nation’s largest retailer, has perfected a“just-in-time competitive strategy.” This retail giant relies on barcodes for instant inventory, distribution centers that purchase supplies at the last minute and deliver only when needed, a small core of suppliers that Walmart can
4. The text does not emphasize firms’ role in shaping the tastes and preferences of consumers even though this is a very important role with firms spending about $150 billion a year on advertising. If it is true that firms are shaping consumer preferences, whose welfare are people maximizing when
3. The analysis in the book suggests that firms hire inputs so that they hold costs as low as possible. Yet, as Gloria Steinem has pointed out, looking at reality one sees men selling refrigerators and women selling men’s underwear.a. Do you believe that that allocation of jobs reflects firms
2. Say that a drug firm could increase its profit by marketing a drug that it knows might have serious side effects. Say also that it knows that it can never be prosecuted for doing so.a. Would it?b. Should it? (Religious)
1. The text presents very detailed cost tables when it considers the decisions of firms.a. Do entrepreneurs have such cost tables available to them when they enter a business?b. If not, how do they gather such information?c. If such information is gathered through trial and error, what implications
19. Say a firm has $100 in fixed costs and average variable costs increase by $5 for each unit, so that the cost of 1 is $25, the cost of 2 is $30, the cost of 3 is $35, and so on. (LO11-4)a. Show VC, AFC, AVC, and MC in a table.b. Graph the AFC, ATC, AVC, and MC curves associated with these
18. Say that a firm has fixed costs of $100 and constant average variable costs of $25. (LO11-4)a. Show AFC, VC, AVC, and MC in a table.b. Graph the AFC , ATC , AVC , and MC curves.c. Explain why the curves have the shapes they do.d. What law is not operative for this firm?
17. An economic consultant is presented with the following total product table and asked to derive a table for average variable costs. The price of labor is $15 per hour.a. Help him do so.b. Show that the graph of the average productivity curve and average variable cost curve are mirror images of
16. If average productivity falls, will marginal cost necessarily rise? How about average cost? (LO11-4)
15. A firm has fixed costs of $100 and variable costs of the following:a. Show AFC, ATC, AVC, and MC in a table.b. Graph the AFC , ATC , AVC , and MC curves.c. Explain the relationship between the MC curve and the AVC and ATC curves.d. Say fixed costs dropped to $50. Which curves shifted?Why?
14. If marginal cost is increasing, what do we know about average cost? (LO11-4)
13. If average product is falling, what is happening to shortrun average variable cost?
12. Graph the following table.a. What is marginal product and average product at each level of production?b. Graph marginal product and average product.c. Label the areas of increasing marginal productivity, diminishing marginal productivity, and diminishing absolute productivity. Number of Workers
11. Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer: (LO11-3)a. New union agreement increases hourly pay.b. Local government imposes an annual lump-sum tax per plant.c. Federal
10. Which of the costs discussed in the chapter is the most important when a firm is deciding how much to produce? (LO11-3)
9. Classify each of the following as fixed or variable costs: (LO11-3)a. Outsourced payroll services.b. Leased offices.c. Company-owned building.d. Payroll taxes.
8. For each of the following indicate what costs are being calculated: (LO11-3)a. FC VCb. TCQc. FCQd. VCQe. AFC AVC
7. Find TC , AFC , AVC , AC , and MC from the following table. Units FC VC 012345 $100 $ 0 100 40 100 100 60 70 100 85 100 130
6. Explain how studying for an exam is subject to the law of diminishing marginal productivity. (LO11-2)
5. What is the difference between marginal product and average product? (LO11-2)
4. What distinguishes the short-run from the long run? (LO11-2)
3. Economan has been infected by the free enterprise bug.He sets up a firm on extraterrestrial affairs. The rent of the building is $4,000, the cost of the two secretaries is$40,000, and the cost of electricity and gas comes to$5,000. There’s a great demand for his information, and his total
2. Peggy-Sue’s cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster, Inc., to come to work at $125,000 per year. Currently, she is producing her own cookies, and she has revenues of $260,000 per year. Her costs are $40,000 for labor,$10,000 for rent,
1. What costs and revenues do economists include when calculating profit that accountants don’t include? Give an example of each. (LO11-1)
Q-10 Why does the marginal cost curve intersect the average variable cost curve at the minimum point?
Q-9 If marginal costs are decreasing, what must be happening to average variable costs?
Q-8 If marginal costs are increasing, what is happening to average total costs?
Q-7 When marginal cost equals the minimum point of average variable cost, what is true about the average productivity and marginal productivity of workers?
Q-6 What determines the distance between the average total cost and the average variable cost?
Q-5 Draw a graph of both the marginal cost curve and the average cost curve.
Q-4 If total costs are $400, fixed costs are 0, and output is 10, what are average variable costs?
Q-3 Firms are likely to operate on what portion of the marginal productivity curve?
Q-2 What are the normal shapes of marginal productivity and average productivity curves?
Q-1 What distinguishes accounting profit from economic profit?
LO11-4 Distinguish the various cost curves and describe the relationships among them.
LO11-3 Calculate fixed costs, variable costs, marginal costs, total costs, average fixed costs, average variable costs, and average total costs.
LO11-2 Describe the production process in the short run.
LO11-1 Explain the role of the firm in economic analysis.
8. If you were economic adviser to a country that was following your advice about trade restrictions and that country fell into a recession, would you change your advice?Why, or why not?
7. In the 1930s Clair Wilcox of Swarthmore College organized a petition by economists “that any measure which provided for a general upward revision of tariff rates be denied passage by Congress, or if passed, be vetoed.” It was signed by one-third of all economists in the United States at the
6. The U.S. government taxes U.S. companies for their overseas profits, but it allows them to deduct from their U.S. taxable income the taxes that they pay abroad and interest on loans funding operations abroad, with no limits on the amount deducted.a. Is it possible that the overseas profit tax
5. Mexico exports many vegetables to the United States.These vegetables are grown using chemicals that are not allowed in U.S. vegetable agriculture. Should the United States restrict imports of Mexican vegetables? Why or why not?
4. When the United States placed a temporary price floor on tomatoes imported from Mexico, U.S. trade representative Mickey Kantor said, “The agreement will provide strong relief to the tomato growers in Florida and other states, and help preserve jobs in the industry.” What costs did Americans
3. Suggest an equitable method of funding trade adjustment assistance programs.a. Why is it equitable?b. What problems might a politician have in implementing such a method?
2. One of the basic economic laws is “the law of one price.”It says that given certain assumptions one would expect that if free trade is allowed, the price of goods in countries should converge.a. Can you list what three of those assumptions likely are?b. Should the law of one price hold for
1. How does considering trade in the broader cultural context change one’s analysis?
5. The text presents free trade as advantageous for developing countries. However, in its period of most rapid development, the half century following the Civil War, the United States imposed tariffs on imports that averaged around 40 percent, a level higher than those in all but one of today’s
4. Who has benefited most from free trade? Who has been hurt most by it? Does that match the positions the various groups have about their support for free trade? Which group do economists align themselves with? Why?(Post-Keynesian)
3. Federic Bastiat wrote “when goods do not cross borders, soldiers will.” Discuss. (Rel i gious)
2. Federic Bastiat wrote: “It seems to me that this is theoretically right, for whatever the question under discussion—whether religious, philosophical, political, or economic;whether it concerns prosperity, morality, equality, right, justice, progress, responsibility, cooperation, property,
1. Federic Bastiat wrote that “government is the great fiction through which everybody endeavors to live at the expense of everybody else.” Is this a correct way to understand the fight about tariffs? (Austrian)
14. What is the relationship between GATT and WTO? (LO10-4)
13. Why would a country want to be a most-favored nation? Why might it not want to be a most-favored nation? (LO10-4)
12. Name three reasons economists support free trade.
11. How are economies of scale, comparative advantage, and trade restrictions related? (LO10-3)
10. How would a credible threat of trade restrictions lead to lower trade restrictions? (LO10-3)
9. Why would a country have trade assistance programs?What makes them difficult to implement? (LO10-3)
8. What are three reasons countries restrict trade? Are they justified? (LO10-3)
7. On January 1, 2005, quotas on clothing imports to the United States first instituted in the 1960s to protect the U.S. garment industry were eliminated. (LO10-2)a. Demonstrate graphically how this change affected equilibrium price and quantity of imported garments.b. Demonstrate graphically how
6. In 1964 President Lyndon B. Johnson imposed the Chicken Tax—a 25 percent tax on all imported light trucks in retaliation for a tariff placed by Germany on chickens imported from the United States. The light-truck tariff hurt Volkswagen van sales. Were these tariffs good or bad from the
5. The world price of textiles is P w , as in the accompanying figure of the domestic supply and demand for textiles.The government imposes a tariff t, to protect the domestic producers. For this tariff: (LO10-2)a. Label the revenue gains to domestic producers.b. Label the revenue to government.c.
Showing 4300 - 4400
of 7548
First
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Last
Step by Step Answers
Get 50% OFF
Claim Now
