Chapter 5 page 116 1 how will the length of the short

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Chapter 5 Page 116 1. How will the length of the short run for the shipping company depend on the state of the shipbuilding industry?
2. Up to roughly how long is the short run in the following cases? (a) A mobile disco firm. (b) Electricity power generation. (c) A small grocery retailing business. (d) Superstore Hypermarkets Ltd’. In each case specify your assumptions. (a) Two or three days: the time necessary to acquire new equipment or DJs. (b) Two or more years: the time taken to plan and build a new power station. (c) Several weeks: the time taken to acquire additional premises. (d) One or two years: the time taken to plan and build a new store. 117 (Box 5.1) 1. Why might it be possible for there to be a zero marginal productivity of labour on many family farms in poor countries and yet for there to be just enough food for all the members of the family to survive? (Illustrate using MPP and APP curves.)
45 (Box 5.1) 2. The figures in the following table are based on the assumption that birth rates will fall faster than death rates. Under what circumstances might these forecasts underestimate the rate of growth of world population?
Chapter 3
119 (Box 5.2) How would you advise the baker as to whether he should (a) employ four assistants on a Saturday; (b) extend his shop, thereby allowing more customers to be served on a Saturday?
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