QUESTION Joe owns a coffee house and produces coffee drinks under the production function q=5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor). What is the marginal product of labor? a) MP=5 b)MP=5k c)MP=5l d)MP=5K/L ANSWER Understanding the Marginal Product of Labor in Coffee […]

QUESTION In the small country of Fictionia, there are 30 workers. Each worker can produce 4 shirts in one day, or bake 2 loaves of bread. These are the only two goods the can be produced. (a)  Draw the consumption possibility frontier (CPF) for Fictionia, showing the combinations of shirts (S) and bread (B) that can be feasibly consumed in a day. Put shirts on […]

QUESTION Tim consumes only apples and bananas. He prefers more apples to fewer, but he gets tired of bananas. If he consumes fewer than 29 bananas per week, he thinks that 1 banana is a perfect substitute for 1 apple. But you would have to pay him 1 apple for each banana beyond 29 that he consumes. The indi§erence curve that passes through the consumption […]

QUESTION Given the price elasticities and price changes for the following products A-E in the table below, show how much the quantity will change (indicating an increase or decrease) and what effect this will have on total revenue (indicating an increase or decrease). Round your answers to 1 decimal place.   Product Price elasticity % ∆ Price %∆ Quantity ∆ Total revenue A 0.7 increase by […]

QUESTION Given the price elasticities and price changes for the following products A-E in the table below, show how much the quantity will change (indicating an increase or decrease) and what effect this will have on total revenue (indicating an increase or decrease). Round your answers to 1 decimal place.   Product Price elasticity % ∆ Price %∆ Quantity ∆ Total revenue A 0.7 increase by […]

QUESTION What is a specific, “real-life”, example of a (just one!) specific business firm inside the state of Washingtonwho currently faces a relatively price elastic demand in the Product Market of the United States? Before posting your answer, make sure to first read those that other students have already posted, so you can ensure that your answer is different than theirs. And the first paragraph […]

QUESTION Your executive director has tasked you with conducting some preliminary research on an emerging and perhaps even controversial topic in your field and then preparing a summary. These findings will be presented at the next board of directors meeting in order to assess whether or not funding should be allocated for further study. You received little direction on what types of sources are expected, […]

QUESTION Comment on the below response: The market impacts of increasing the federal minimum wage to $15 per hour can be complex and vary depending on various factors, including the current economic conditions and geography. The market will experience a labor surplus if the minimum wage is raised because of the rise in labor supply and decrease in labor demand. Because they will be paid […]

QUESTION What could consider a market has evolved over time, from an actual physical marketplace, such as a farmers market, to large stores and to Internet marketplaces such as eBay. What’s the main components necessary for a market to occur? What market can one participated in, either professionally or personally? Why is it important to take part in this market, and what differentiates it from […]

QUESTION In your responses, comment on at least two posts from your peers by providing examples from the news of monopolies and firms in monopolistic competition markets. Compare and contrast the two types of markets. I feel like I finally completed a simulation that made sense to me. I did the simulation twice using a different approach each time. On the first picture I automatically […]