Jim Range has to choose between buying more soda or more pasta for the week.

Please see the attached question, any help will be greatly appreciated. Question Jim Range has to choose between buying more soda or more pasta for the week. He has a fixed income and he knows the prices of both products. Using indifference curves and budget constraint lines, illustrate the amount of soda and pasta that Jim will purchase. When he gets to the store, he finds the price of soda has fallen dramatically. How does this change his optimal purchase? Can a general rule of human behavior be developed from this graphical example?

MorTex Company

The MorTex Company assembles garments entirely by hand even though a textile machine exists that can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day (i.e., marginal product is constant and equal to 200). Installation of the first textile machine on the assembly line will increase output by 1,800 units daily. Currently the firm assembles 5,400 units per day. a. The financial analysis department at MorTex estimates that the price of a textile machine is $600 per day. Can management reduce the cost of assembling 5,400 units per day by purchasing a textile machine and using less labor? Why or why not? b. T... click for more

For a short run production function which output is determined by the number of workers utilized (capital stock held constant) which of the following is true?

For a short run production function which output is determined by the number of workers utilized (capital stock held constant) which of the following is true? a. In general, when there are a few workers the marginal product of labor will be constant. b. When the marginal product of labor is negative total product is falling. c. When diminishing returns set in, adding one more worker decrease output. d. All of the above. e. None of the above.

Short Run Production - A producer is hiring 20 units of labor and 6 units of capital

A producer is hiring 20 units of labor and 6 units of capital (bundle A) The price of labor is $10, the price of capital is $2, and at A, the marginal product of labor and capital are both equal to 20. beginning at A, if the producer increases labor by one unit and decrease capital by i unit, then a. cost remains constant and output increases by 20 units b. cost remains constant and output decreases by 20 units c. Output remains constant and cost increases by $8 d. Output remains constant and cost decreases by $8 e. Both cost and output remain constant

Production Output - A producer is hiring 20 units of labor and 6 units of capital (bundle A).

A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital is $2, and at A. The marginal products of labor and capital are both equal to 20. Beginning at A, if the producer increases expenditures on labor by $1 and decreases expenditures on capital by $1, which statement is true? a. output per dollar spent will increase b. output per dollar spent will decrease c. marginal product of labor will eventually rise and marginal product of capital will eventually fall. d. marginal product of labor will eventually rise and marginal product of capital will remain constant e. none of the above