Harold owns a cranberry bog in which he grows cranberries. Harold’s farm is a competitive, profit-maximizing firm. Harold’s production function is detailed in the table below. Labor (# of workers) Output (in bushels) 0 0 1 90 2 170 3 220 4 250 5 270 If Harold pays his workers $250 per day and sells his cranberries for $5 per bushel, what is the maximum number of workers that he will hire? Please show your works.
9. John owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements? a. wages John could earn washing windows b. dividends John's money was earning in the stock market before John sold his stock and bought a shoe-shine booth c. the cost of shoe polish d. Both b and c are correct. 7. Which of the following would be categorized as an implicit cost? (i) forgone investment opportunities (ii) wages of workers...
Mr. Jernigan owns a piece of land on which he grows
corn. Corn production annually requires $6 comma 0006,000 in
seed, $3,000 in fertilizer, and $10,000 in pesticides. Mr.
Jernigan uses his own labor to grow the corn and therefore hires no
workers. If Mr. Jernigan did not use his time to grow corn, he
would instead be able to sell insurance, earning $35,000 per
year.
Suppose another farmer has just offered to pay Mr. Jernigan rent of
$20,000 per...
1. The general term for market structures that fall somewhere between monopoly and perfect competition isa. incomplete markets.b. monopolistically competitive markets.c. imperfectly competitive markets.d. oligopoly markets.2. An oligopoly is a market in whicha. there are many price-taking firms, each offering a product similar or identical to the products offered by other firms in the market.b. there are only a few sellers, each offering a product similar or identical to the products offered by other firms in the market.c. the actions...
2. The table below shows the total production for varying numbers of hours worked producing yo-yos. The firm sells its product and hires its workers in competitive markets. Price of Yo-Yos Number of Number of Hours Worked Yo-Yos Produced Wage Rate per Hour (S) 10 10 11 10 170 78 10 12 13 14 10 10 88 90 15 10 (a) Determine the marginal product of labour from hiring the (i) 11th worker, (ii) the 12th worker, (iii) the 13th...
Given the Production Function of a perfectly competitive firm: Q = 80L + 10L2 - L3, where Q = Output and L = labor input a. At what value of L will Diminishing Returns take effect? b. Calculate the range of values for labor over which stages I, II, and III occur? c. Suppose that the wage rate is $30 and the price of output is $2 per unit. How many workers should the firm...
Consider an (inverse) demand curve P = 30 - Q. And a total cost curve of C(Q) = 12Q. (a) Assume a monopolist is operating in this market. (i) Calculate the quantity (qM) chosen by a profit-maximizing monopolist. (ii) At the profit-maximizing quantity, what is the monopolistic market price (pM) of the product. (iii) Calculate the dead-weight loss (allocative inefficiency) associated with this monopoly market. Assume the market for this product is perfectly competitive. (i) Calculate the market-clearing output (qPC)...
i) He owes $80,000 for his house which he believes is worth $150,000 ii) His car is worth $20,000 against which there there is $2,000 on the remaining bank loan. iii) his stock protfolio has risen to $50,000 iv) he has a $10,000 bank balance in his bank account which is earning him 1.2% annual interest rate v) and the value of this belonging is $45,000. he has just received his monthly paycheck for $6,000 and he is trying to...
Farmer Frank lives on 100 acres on a rural farm where he raises chickens (which produce eggs) and grows tomatoes. Eggs and tomatoes are the only two goods that Frank consumes. This year, Frank's chickens will yield 100 eggs and 10 pounds of tomatoes, respectively. (a) If Frank were not able to trade his endowment of tomatoes and eggs, but he can freely dispose of goods, what would his set of feasible consumption bundles look like? Show it on a...