Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 9, Problem 2RQ
Which of the following are short-run and which are long-run adjustments? LO9.1
a. Wendy’s builds a new restaurant.
b. Harley-Davidson Corporation hires 200 more production workers.
c. A farmer increases the amount of fertilizer used on his corn crop.
d. An Alcoa aluminum plant adds a third shift of workers.
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The following is a table of cost for a toy manufacturing firm. The variable input is labor. Use
this table to answer the following question.
Average variable Average fixed
cost
Average
Variable
Quantity of toys
Total costs
cost
total cost
costs
$0
$20
$10
A
$40
В
In the cell B, which number is correct?
10
O 5
none of these options is correct
O 15
Let's assume that a firm produces 60 products. Its total weekly cost (TC) at this output
is $2,100. This includes TVC and TFC. We also know that the firm employs 3 part-
time workers at a wage cost of $600 per worker per week. This is the firm's only
variable cost (TVC). What is the firm's average fixed cost (AFC) at this output?
O $2.50.
O $2.
O $5.
O $100.
O $10.
Let's assume that a firm's total weekly costs are as follows: 1. Salaries of hired workers
$5,000. 2. Supplies = $1,000. 3. Rent = $600, 4. The owners have invested a certain
amount of their own money into the business. This could have earned them interest of
$200 per week if they had chosen to put it into a bank instead of investing it into their
business. 5. The value of the owner's time is estimated to be $800 per week. What are
the firm's total economic costs?
O $6.000
O $7.600.
O $900.
$7.500.
O $6.700.
6.Which of the following are short-run and which are long-run adjustments? LO3
a.Wendy’s builds a new restaurant.
b.Harley-Davidson Corporation hires 200 more production workers.
c.A farmer increases the amount of fertilizer used on his corn crop.
d.An Alcoa aluminum plant adds a third shift of workers.
Chapter 9 Solutions
Microeconomics
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Indicate how each of the following would shift the...Ch. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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