Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Question: Entrepreneurs shift capital and labor across industries in pursuit of profit. Let's look at this a little more closely. Suppose there are two industries: a high-profit industry, Industry H, and a low-profit industry, Industry L. Answer the following questions about these two industries.

a. If the two industries have similar costs, then what must be true about prices in the two industries?

b. What does your answer to part a imply about the value of the output in the two industries?

c. If labor and capital are moved from Industry L to Industry H, what is given up? What is gained?

d. Suppose instead that the prices in the two industries were identical. In this case, what must be true about the costs in the two industries?

e. What does your answer to part d imply about the amounts of capital and labor required to produce one unit of output in each industry?

f. If labor and capital are moved from Industry L to Industry H, are more units of output lost in Industry L or gained in Industry H?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92653100

Have any Question?


Related Questions in Microeconomics

Question a person buys a bond that matures in 10 years and

Question: A person buys a bond that matures in 10 years and pays a 10% coupon rate. The face valley is 10,000 . How much money will be received in the 10th year? The response must be typed, single spaced, must be in time ...

Question there are five horseracing tracks in kentucky the

Question: There are five horseracing tracks in Kentucky. The Kentucky legislature allows only one track to be open at a time. a. How will it affect the elasticity of demand for horse racing tickets? b. How does this rest ...

Question tescos first international foray was into hungary

Question: Tesco's first international foray was into Hungary in 1994, when it acquired an initial 51 percent stake in Global, a 43-store, state-owned grocery chain. By 2004, Tesco was the market leader in Hungary, with s ...

Question graphingcalculating questions each of the

Question: Graphing/Calculating Questions: Each of the following should include the requested graphic 1. Using LD = 125-9W as a starting labor demand curve, indicate the change when consumers increase their demand for the ...

Question we said earlier that the invention of liability

Question: We said earlier that the invention of liability insurance was a precondition for the creation of value that resulted from driving. But because liability insurance also encourages drivers to take additional risk ...

Question suppose a country has 100 inhabitants the

Question: Suppose a country has 100 inhabitants. The population can be divided into two categories: employed and unemployed. In any given year, the transition probabilities from employed to employed is 0.95 and from unem ...

Question a manufacturer of laptop computers operates a

Question: A manufacturer of laptop computers operates a plant with an annual capacity of 6,630,000 laptop units. One of his models is expected to sell 390,000 units in the coming year. How large should each product lot b ...

Question - a report came out in july last year that said

Question - A report came out in July last year that said Australia's "do nothing" approach of up-taking electric cars could cost the local economy over $350 million in the next 20 years, on top of the one million tonnes ...

Question synthesizing suppose you were told that you would

Question: Synthesizing Suppose you were told that you would earn $95,000 in 2020. Explain why this information would say little about the standard of living you might enjoy. What other information would you need before y ...

Question what is the difference between delegate

Question: What is the difference between delegate representation and trustee representation? How did the difference lead to American Revolution? The response must be typed, single spaced, must be in times new roman font ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved