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

Author Question: Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost ... (Read 80 times)

sammy

  • Hero Member
  • *****
  • Posts: 818
on: Jun 29, 2018
Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
 
  A) 10 thousand hammers B) 8 thousand wrenches
  C) 13 thousand hammers D) 0 wrenches

Question 2

Using Figure 10.1 above is it possible to determine the price that this product is selling for if it is being sold in a competitive market? If so what is that price?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sabina576

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Marginal revenue product is equal to the marginal product times the price. Alternatively that means that price is equal to MRP divided by MP. Since we have both MRP and MP we can discover the price. Taking the first data point we have an MRP of 5 and an MP of 10 . This yields of price of .50 .


sammy

  • Member
  • Posts: 818
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
McBurney’s point is the common location of pain in children and adolescents with appendicitis. McBurney’s point is the common location of pain in children and adolescents with appendicitis.
One-point linear perspective. One-point linear perspective.
Sarah Sze, Triple Point (Pendulum). Sarah Sze, Triple Point (Pendulum).
Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
Calculate the weighted-average cost of the following inventory purchases:DateQuantity ... Calculate the weighted-average cost of the following inventory purchases:DateQuantity ...
Video: Definition of heart rate

For a complete list of videos, visit our video library