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Author Question: Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost ... (Read 111 times)

sammy

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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?


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sabina576

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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

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Reply 2 on: Jun 29, 2018
Wow, this really help

Liamb2179

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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