1- In the command economy, the government controls and decides what and
how much of a product will be produced. The government also controls who
gets the products by setting wages. In capitalism, consumers determine how
much goods are produced through the
The table below show the total utility in utils that a utility-maximizing consumer receives form
consuming two goods: apples and oranges.
Upload to OneDrive by Wednesday Nov. 9th 11:00 p.m.
Clean n Shine is a competitor to Spotless Car Wash. Like Spotless, it must pay $150 per day for each
automated line it uses. But Clean n Shine has been able to tap into a lower-cost pool of labor,
Bob's Burger Box has been operating continuously since 1962. The original investment was $100,000, but
the business is worth a lot more today. In fact, Bob's chief competitor would like to buy him out and has
made a standing of $1 million any time
The following production function for a pet supply manufacturer, Lindas Pets Supplies:
a. Fill in the missing values for marginal product
1- There are two types of taxes, lump sum and per unit taxes. The per unit tax affects
marginal cost, so producers must decrease production. Lump sum, on the other
hand, doesnt affect marginal cost so quantity remains the same. Lump sum affects
The following table gives the short-run and long-run total costs for various
levels of output of Consolidated National Acme, Inc.:
a. Which column, TC1 or TC2, gives long-run total costs and which gives short
run total costs? How do you know? The f
1- At the beginning, production increases at an increasing rate because variable inputs
are added to fixed inputs. Then, production increases at a decreasing rate (law of
diminishing marginal returns). Production then will decrease.
2- The marginal produc
Basic Economic Concepts
Upload your answers to OneDrive. Name the document Ch2HW1
Section 1 - True or false
1. Economic models must mirror reality or they are of no value. False
2. Assumptions make the world easier to understand because they simplify real
Ch2CW2 - Upload to your OneDrive
1. The following production possibilities frontier shows the available tradeoffs
between consumption goods and capital goods. Suppose two countries
(Jordan & UK) face the identical production possibilities fr
Ch2HW3 Due Monday Sep. 19th
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1. The table below shows the total labor hours required to produce a unit of gold and the
total labor hours required to produce a unit of sugar in Portugal and Spain.