Question: Answers please! Resources Required Price per Technique 1 Technique 2 Technique 3 Unit of Units Units Units Resource Resource W $2 2 N Land 2

Answers please!

Resources Required Price per Technique 1 Technique 2 Technique 3 Unit of Units Units Units Resource Resource W $2 2 N Land 2 Labor $4 W Capital 1 2 Entrepreneurial $5 Ability Suppose there are three techniques for producing 1 wool blanket, as shown in the table above. a. With the resource prices shown, which production technique will the firm use? Why? b. Suppose the firm can sell blankets for $26 each. Will the firm be profitable? c. Assume a new technique, call it Technique 4, is developed that economizes on the relatively expensive labor. It requires 2 units of land, 1 unit of labor, 3 units of capital, and 1 unit of entrepreneurial ability. Will the firm adopt this new technique? d. Suppose the firm's cost of capital rises to $5, all other values being the same. Which technique will the firm now choose? Goran M. Muhamad Principles of Economics 26

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

How would the companys cash needs change for the company in Examples 14-1 to 14-5 if they subcontracted out $25,000 of labor per month for $26,000 per month on the first project for the months of...

Principles of MicroEconomics 7/b of a unit of capital goods 3 units of capital goods 6 units of capital goods 1/6 of a unit of capital goods 1 1. Which of the following is a characteristic of a sole...

MY QUESTIONs are ATTACH in the files...

please answer the number 10 to 13. i already have the 1 to 9 thank you i have the answers from 1 to 9. just need 10 to 13 12:31 TBA, Inc., manufactures and sells concrete block for residential and...

can you please answer number 6 to 13 using spreadsheet. thank you due next week 12:31 TBA, Inc., manufactures and sells concrete block for residential and commercial building. TBA expects to sell the...

see attach file Suppose that the S&P 500, with a beta of 1, has an expected return of 28% and T-bills provide a risk-free return of 7%. a. What would be the expected return and beta of portfolios...

1 TranscribedText: Trio Company reports the following information for its first year of operations. Direct materials $ 17 per unit Direct labor $ 18 per unit Variable overhead $ 6 per unit Fixed...

Hello please find everything attached. Also try only to answear the workbook. Thank you, As noted in the Instructions tab of the workbook. You should only enter formulas; not hard-coded numbers....

Just the Question 10!!! Please!!! 1. 2. 3. 4. 5. 6. 7. Those are the answers from previous question: 1-9 question. Part 1. Part 2. Part 3. Part 4. Part Two Instructions Using a spreadsheet and based...

ces The management of Zigby Manufacturing prepared the following balance sheet for March 31 Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Assets ZIGBY...

Please answer the following questions below. Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $920. Selected data for...

You can detail the computation of gain CAL INC realizes and recognizes on the amounts distributed to Noah in complete liquidation You then can compute the taxes CAL INC owes

Determine the measures of a, y and z at right. Justify each conclusion using geometric 28 relationships.

. If employees at your institution suspected an ongoing instance of ID theft or pretext calling, the correct course of action would be to immediately A . report the situation to the proper...

A company is planning a plat expansion. They can build a large or small plant. The payoffs for the plant depend on the level of consumer demand for the company's products. The pay off matrix and cost...

A new study on the widely used antidepressant AD+ has been published. The study has information on the side effects of the drug. For each of the 15 randomly chosen users of AD+ who participated in...

Six balls numbered 1 to 6 are placed in a bag. Some of the balls are grey and some are white. The balls numbered 2 and 5 are grey. The balls numbered 1, 3, 4, and 6 are white. A ball will be selected...

Events A and B are mutually exclusive. Suppose event A occurs with probability 0.06 and event B occurs with probability 0.70. If event A or event B oCcurs (or both), what is the probability that A...

Bob has a deck of 10 cards numbered 1 through 10. He is playing a game of chance. This game is this: Bob chooses one card from the deck at random. He wins an amount of money equal to the value of the...

The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub. City Map Coordinates (x,y) Shipping Load A (6,10) 4 B (6,9) 11...

6. Give an example of how the liking principle can be used to influence others.

5. Give an example of how the consensus principle can be used to influence others.

9. Give an example of how the word because can trigger a cognitive reflex in another party.