Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Suppose that, for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”, on the axes) for the production of three different quantities of ditches. Do they have a “funny” shape?

a) Now consider one such ditch-digging firm that has five backhoes but employs six backhoe operators. Can you explain why this might make sense? (Hint: think about whether/how the marginal product of the sixth backhoe operator could be positive)

b) Now suppose you see another ditch-digging firm that has seven backhoes but employs six backhoe operators. How could this make sense?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91822992

Have any Question?


Related Questions in Business Economics

Use the information on the market for bicycles to answer

Use the information on the market for bicycles to answer the following questions. Demand: P = -125*Q + 540; Supply: P = 150*Q + 210, where P is the price of bicycle and Q is the quantity demanded or supplied of bicycle. ...

A particular normally distributed population has a mean of

A particular normally distributed population has a mean of 40 and a standard deviation of 6. For each sample below, use a z test and indicate if it shows a significant result (α = .05, onetailed): (a) sample of N = 10 wi ...

A production system has two spares of a critical component

A production system has two spares of a critical component that have average uptime 1/lamba = 1 month. Find the probability that the 3 components (the operating one and the two spares) will last more than 6 months. Assum ...

During a certain week the mean price of gasoline was 2719 a

During a certain week the mean price of gasoline was $2.719 a gallon. A ronadom sample of 32 stations is drwn. What is the probability that the mean price was between $2.695 and $2.716. Assume o=$0.048.

Why hasnt health care in australia been entirely privatised

Why hasn't health care in Australia been entirely privatised, according to Boxall and Gillespie? Should health care (in Australia) be wholly privatised? Do you think it will be in the future?

In the following five scenarios h0 alpha the obtained

In the following five scenarios, H0, α, the obtained probability (p-value), and the true status of H0 are given. Assume that our test statistic follows a standard normal distribution. Do the following: (a) State whether ...

If the federal government for the united states outlays for

If the federal government for the United States outlays for transfers and purchases of goods and services divided by the gross domestic product  remains the same  next year, what does this mean forthe government's influe ...

Without doing any math or drawing a graph which is bigger

Without doing any math, or drawing a graph, which is bigger, compensating variation or equivalent variation for a tax? Consider an individual with Cobb-Douglas preferences over some good and all other goods. In what sens ...

A monopoly faces a demand curve of q 500 - 2p and has

A monopoly faces a demand curve of Q = 500 - 2P and has costs of TC = 100 + 10Q + Q^2 (Thus, you can solve MC = 10 + 2Q). Graphically depict Demand and MC. Also, I would like to know a) What is the profit maximizing leve ...

Sam has had the following transactions during the

Sam has had the following transactions during the year: Gambling losses           $3,000 New suit for work             $500 Tax Preparation Fees       $1,000 Investment mgmt fee       $2,200 Sam's AGI of $110,000 is brok ...

  • 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