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

Author Question: Consider a two-good production economy in which both goods are produced with fixed proportions ... (Read 72 times)

KimWrice

  • Hero Member
  • *****
  • Posts: 579
on: Jul 1, 2018
Consider a two-good production economy in which both goods are produced with fixed proportions production functions. Then, some efficient allocations will exhibit unemployment of some factor providing
 a. the firms use the inputs in different proportions.
  b. the firms exhibit diminishing returns to scale.
  c. the firms exhibit increasing returns to scale.
  d. production can never be efficient if there are unemployed inputs.

Question 2

Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. Suppose that a nationwide quota (of 20) is enforced so that more can be used in a war effort. What is the consumer surplus?
 a. 200
  b. 400
  c. 600
  d. 800


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Li Jun

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

a


KimWrice

  • Member
  • Posts: 579
Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

lindahyatt42

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Mendel's breeding program that produced a 9 : 3 : 3 : 1 ratio Mendel's breeding program that produced a 9 : 3 : 3 : 1 ratio
“Bad,” “neutral,” and “good” mutations. “Bad,” “neutral,” and “good” mutations.
British Iron Production, 1600–1870 British Iron Production, 1600–1870
Stem Cell Production Stem Cell Production
Most Canadian seniors rated their health as good to excellent. Most Canadian seniors rated their health as good to excellent.
Complete the following production chart and plot the points. Complete the following production chart and plot the points.
Video: Structures that affect circulation - kidneys, blood volume and venous tone

For a complete list of videos, visit our video library