Question

a-What are the daily total fixed costs of producing LCD screens? b-What are the total variable costs of producing 100LCD screens per c -What are the total costs of producing 100 LCD d -What is screens per day? firt determine the toha miuin 100Dstesinsed od 9Toaswer thiqeu marginal cost of alternatively, the total variable costs-of producing 99 LD of 99? (Hint: To answer this question, you must 20- A basic problem with the infant-industry argument is that: a. most industries need protection when they are mature, not when they are first established. b. the amount of the tariff is unlikely to have much impact on the success of an infant industry. c. political pressure will likely prevent the withdrawal of the tariff when the industry matures. d. domestic consumers will continue to buy the foreign products anyway, regardless of the tarit. 21- Which of the following is a statement of positive economics? a. Too much government spending is the biggest problem facing the U.S. economy b. Creating jobs is the most serious problem facing the U.S. economy c. Raising taxes provides additional revenue that should be used to finance health care. d. If taxes are over 50 percent of national income, job creation falls. Exhibit 5, Long run Average Cost 50 40 per 30 (dollars) 20 10 LRAC Costs unit o 500 1.000 1.500 2.000 Quantity of output (units per week) n marginal cost, and long-run average cost are all equal at which level of output long-run a it 6, short-run average total cost, short-run 22-In Exhibi per week? 500 units. 1,000 units 1,500 units. 2,000 units b. d. 23- In Exhibit 5, economies of scale exist up to: 500 units of output per week

Answer 1

20) Solution: political pressure will likely prevent the withdrawl of the tariff when the industry matures

Explanation: The basic problem with using the infant industries argument to justify protectiion of the industry from global competition is that once in place, it is tough to remove protection even when the industry matures.

21) Solution: If taxes are over 50 percent of national income, job creation falls.

Explanation: The positive economics focuses on facts and cause-and-effect behavioral relationships.

22) Solution: 1,000 units

Explanation: The short run average total cost, and long run average total cost are equal at 1,000 units; the lowest level when short run average total cost cuts long run average total cost

　

　

23) Solution: 1,000 units of output per week

Explanation: The short run average total cost, and long run average total cost are equal at 1,000 units of output per week, thus it will be economies of scale.