H.W CHAPTER 5
(a) Capital is variable input and labor is fixed input (since amount of labor is
fixed at 20).
(b) Fixed cost = w*L
20 x $30 = $600
(c) Variable cost of 475 units = r*k= 6 x $25 = $150
(d) MC>MP they should be equal. To maximized profit
H,W chapters 1-2
1-South west Airlines begins a Bags Fly Free campaign ,charging no fees for a
first and second checked bag. Does this situation best represent producer
producer rivalry, consumerconsumer rivalry, or consumerproducer rivalry?
H.W Chapter 3
1a. P = $12, R = ($12)(1) = $12.
P = $10, R = ($10)(2) = $20.
the price decrease results in an $8 increase in total revenue, so demand is elastic
over this range of prices.
b. P = $4, R = ($4)(5) = $20.
P = $2, R = ($2)(6) = $12.
the price d
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Museum Painting Analysis
Love of Winter George W. Bellows, 1914
Accession Number 1914.1018
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