Author Question: Ayanna grows herbs. Last year she grew 2,000 pounds of herbs in a year while using 250 square feet ... (Read 122 times)

dmcintosh · **on:** Jun 29, 2018

Ayanna grows herbs. Last year she grew 2,000 pounds of herbs in a year while using 250 square feet of land and 1 worker. This year she doubled her land to 500 square feet, doubled her workers to 2, and grew 4,500 pounds of herbs.

She sells her rare, organic herbs for 50 a pound. She pays her workers 25,000 a year and rents her land for 100 per square foot for a year. These are her only costs. a) What was Ayanna's total cost last year and this year? b) What was Ayanna's average total cost last year and this year? c) Did Ayanna experience economies or diseconomies of scale?

Question 2

Explain what post hoc fallacy means and give an example.

What will be an ideal response?

marict · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

a) Ayanna's total cost last year was 50,000 and her total cost this year is 100,000.
b) Ayanna's average total cost last year was 25 a pound and her average total cost this year is 22.22 a pound.
c) Ayanna's average total cost decreased so she experienced economies of scale.

Answer to Question 2

Post hoc fallacy is a common error in thinking about causation. An example would be if Event A happens before Event B, Event A must have caused Event B to occur.