This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Refer to Figure 11-15. What is the combination of inputs that produces 200 gooseberry pies at the ... (Read 108 times)

Lobcity

  • Hero Member
  • *****
  • Posts: 524
on: Jun 29, 2018
Refer to Figure 11-15. What is the combination of inputs that produces 200 gooseberry pies at the lowest cost?
 
  A) combination e: 10 hours of labor and 48 units of capital
  B) combination f: 40 hours of labor and 24 units of capital
  C) combination g: 60 hours of labor and 14 units of capital
  D) combination h: 60 hours of labor and 9 units of capital

Question 2

Grant has 200 to spend each month on restaurant meals and jazz performances at his
  neighborhood jazz club. The price of a typical restaurant meal is 20 and the price of a jazz performance ticket is 10.
 
  Grant is maximizing his utility by consuming 6 restaurant meals and attending 8 jazz performances. Suppose Grant still has 200 to spend, but the price of restaurant meal rises to 25, while the price of jazz performance ticket drops to 8. Can it be determined if Grant is better off or worse off than he was before the price change? Use a budget constraint/indifference curve graph to illustrate your answer.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

amandanbreshears

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Initially, when the price of a typical restaurant meal is 20 and the price of a jazz performance ticket is 10, Grant consumes the bundle A on BC1. Following the price changes, Grant's new budget line is BC2. He is no longer able to afford this same bundle A as shown in the figure below, but without having information to plot his new indifference curve, it is uncertain whether he is better off or worse off than he was before the price change.


Lobcity

  • Member
  • Posts: 524
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

okolip

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Mixing bacterial genotypes produces rare recombinants Mixing bacterial genotypes produces rare recombinants
Hydrocephalus. The figure on the left is a child with the enlarged ventricles of hydrocephalus. The Hydrocephalus. The figure on the left is a child with the enlarged ventricles of hydrocephalus. The
A peroxidation reaction involving a fatty acid is depicted in the figure below. A peroxidation reaction involving a fatty acid is depicted in the figure below.
In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi
Figure of a Woman with a Drawing Showing Evidence of Original Painting and Outlining Design Scheme Figure of a Woman with a Drawing Showing Evidence of Original Painting and Outlining Design Scheme
(a) Chromosome painting with five different-colored markers in a normal cell. (b) Painting produces (a) Chromosome painting with five different-colored markers in a normal cell. (b) Painting produces
Video: Hormonal regulation of pregnancy - weeks 2 through 38

For a complete list of videos, visit our video library