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- Assume an economy where there are two producers: a wheat producer and a bread producer. In agiven year, the wheat producer grows 3 million tonnes of wheat, of which 2.5 million tonnes aresold to the bread producer at $30 per bushel, and 0.5 million tonnes are stored by the wheatproducer to use as seed for next years crop. The bread producer produces and sells 100 millionloaves of bread to consumers for $3.50 per loaf. Determine GDP in this economy during this yearusing the product and expenditure approaches.44. What are variable costs? O Land cost Machinery and IT equipment in short-run wheat for producing bread a large factory 45. What statement is true average cost does not include fix cost marginal cost does not include fix cost marginal cost always move in the same direction with average cost None is truell touch LTE 10:11 PM O O 35% Done A docs.google.com AA C the quantity of at least one factor of production is fixed. Which of the following are two components of the opportunity cost of using capital already owned by the firm? * economic profit and normal profit implicit rental rate and economic profit economic depreciation and forgone interest explicit rental rate and economic costs Page 5 of 5 Вack Submit
- QUI The figure below depicts the production function of grain for farmers under average growing conditions with the currently available Noi technology. Mar 9007 PF 800- 700- 600- 500- 400- 300- 200어 100- o Slope 732,000/ 1,600 = 458 04 400 800 1200 1600 2000 2400 2800 Number of farmers Select one or more: In a year with exceptionally good weather conditions, the production function curve will be higher and parallel to the curve O a. above. O b. A discovery of new high yielding crop seeds would tilt the production function curve higher anti-clockwise, pivoted at the origin. O C. In a year of bad drought the production curve can turn downwards for large numbers of farmers. O d. If there is an upper-limit on the amount of grain that can be produced, then the curve will end up horizontal for large number of farmers. S Type here to search 25 hp t4 15 16 eSC 5 6. 7. 00 %24 3. . ........ Kilogrammes of grain produced (thousands)3. First, do the following functions exhibit increasing, constant, or decreasing returns toscale? Why? Explain in detail. Second, calculate the marginal product of each factorand discuss what happens to the marginal product of each individual factor as that factoris increased and the other factor is held constant. a. q = 3L + 4Kb. q = (2L + 2K)1/3c. q = 2LK2d. q = L1/4K1/3e. q = 4L1/2 + 4KDRYERS 888888888 100 90 80 70 60 50 40 30 20 10 to D O a. The economy has insufficient resources to produce at a more desirable point. O b. The economy's available technology prevents it from producing at a more desirable point. O c. There is widespread unemployment in the economy. O d. The economy is experiencing economic growth. im 10 20 30 40 50 60 70 80 90 100 WASHERS Figure 2-3 Refer to Figure 2-3. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?
- ull touch LTE 10:11 PM @ O 35% Done A docs.google.com AA C account * Required Section C Which of the following statements is true? * If average product equals marginal product, average product decreases. If marginal product equals average product, marginal product is a maximum. If marginal product equals average O product, average product is a maximum. If marginal product exceeds average product, marginal product increases.12. As a result of a fire, a small business owner loses some of her computers and other equipment. If the property of diminishing returns applies to all factors of production, she should expect to see a. a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.The output produced in bushels and the prices of this output ($/bushel) over the last three years for Seth Johnson, a farmer in Amarillo, Texas, are as follows: Year Output (bushels) Price ($/bushel) 2010 70,000 $3.20 2011 75,000 $2.90 2012 80,000 $3.50 Let the base year be 2011. What is the price index for 2012? Select one: O a. 1.094 O b. 0.829 O c. 1.207 O d. 0.914 e