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Prac Tesr 1 p 2 - -Increase in technology development...

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Explain what a Production Possibility Frontier graph shows. One Hour Burgers Fries McDonald’s 4 16 Burger King 5 15 Who has the absolute advantage for making burgers, fries? Who has the comparative advantage for each output? If the two companies are open ten hours a day, draw a PPF for each? If the two merged and only made the item they had an advantage making, what term would this be called? Calculate the line equation of each company’s production possibilities. Draw a supply and demand graph and correctly label all the parts of the graph.
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How would the following events affect the supply and demand graphs? -Average Income increases for a normal good. -Negative reports about an inferior good. -Alternative product in production becomes more profitable. -Price increase for a substitute. -Price increase of given product.
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Unformatted text preview: -Increase in technology development. Calculate the equilibrium for these Supply and Demand equations: S: P=.02Q D: P=4-.02Q Explain the difference between a fixed and variable cost. If a firm has a cost equation of y=20+2X and increases production by 5 units, what will the marginal cost be? What are the fixed, variable, and marginal costs when driving a car. Jamie Pollard fired Wayne Morgan and Dan McCarney this past year. What are some of the explicit and implicit costs of these decisions? Match the following a. Post Hoc Fallacy 1. Large number of cars causes high crime rate b. Ceteris Paribus 2. What is good for one isn’t good for all c. Correlation doesn’t imply causality3. Hold all other factors constant d. Fallacy of Composition 4. Something happening before doesn’t imply causality...
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Prac Tesr 1 p 2 - -Increase in technology development...

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