The point K = 25, L = 400 also lies on the q = 2000 isoquant. If L = 401, what must K be for this input combination to lie on the q = 2000 isoquant? What is the approximate value of the MRTS at K = 25, L = 400?

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ECO 300, Summer 2022

Problem Set #3

1. Suppose that the hourly output of chili at a barbecue (q, measured in pounds) is characterized by q = 20√KL where K is the number of large pots used each hour and L is the number of worker hours employed.
a. Graph the q = 2000 pounds per hour isoquant.
b. The point K = 100, L = 100 is one point on the q = 2000 isoquant. What value of K corresponds to L = 101 on that isoquant? What is the approximate value for the MRTS at K = 100, L = 100?
c. The point K = 25, L = 400 also lies on the q = 2000 isoquant. If L = 401, what must K be for this input combination to lie on the q = 2000 isoquant? What is the approximate value of the MRTS at K = 25, L = 400?
d. For this production function, the MRTS is MRTS = K/L.

Compare the results from applying this formula to those you calculated in part b and part c. To convince yourself further, perform a similar calculation for the point K = 200, L = 50.

e. If technical progress shifted the production function to q = 40√KL all of the input combinations identified earlier can now produce q = 4000 pounds per hour.
Would the various values calculated for the MRTS be changed as a result of this technical progress, assuming now that the MRTS is measured along the q = 4000 isoquant?

2. Consider the production function f (L, K) = L + K. Suppose K is fixed at 2. For this function, the marginal product of labor, MP(L), is 1. (a) Find the algebraic expression for the average product of labor AP(L). (b) Graph the total product of labor function TP(L), the average product of labor AP(L), and the marginal product of labor MP(L). Does your answer to part b violate the rule describing the relationship between average and marginal values? Explain.

3. For each of the following production functions, determine if the technology exhibits increasing, decreasing, or constant returns to scale.
a. f (L, K) = 2L + K
b. f (L, K) = √L + √K
c. f (L, K) = L2 + K
d. f (L, K) = √LK + L + K

4. A firm uses capital and labor to produce output according to the production function q = 4√KL, for which MPL = 2√K/L and MPK = 2√L/K.
a. If the wage w = $1/labor-hr. and the rental rate of capital r = $4/machine-hr., what is the least expensive way to produce 16 units of output?
b. What is the minimum cost of producing 16 units?
c. Show that for any level of output q, the minimum cost of producing q is $q.
d. Explain how a 10% wage tax would affect the way in which the firm choose to produce any given amount of output. (That is, the new wage is (1 + .10) times the original wage.)

5. Suppose that the Acme Gumball Company has a fixed proportions production function that requires it to use two gumball presses and one worker to produce 1000 gumballs per hour.
a. Explain why the cost per hour of producing 1000 gumballs is 2v + w (where v is the hourly rent for gumball presses and w is the hourly wage).
b. Assume Acme can produce any number of gumballs they want using this technology. Explain why the cost function in this case would be TC = q(2v + w), where q is output of gumballs per hour, measured in thousands of gumballs.
c. What is the average and marginal cost of gumball production (again, measure output in thousands of gumballs)?
d. Graph the average and marginal cost curves for gumballs assuming v = 3, w = 5.
e. Now graph these curves for v = 6, w = 5. Explain why these curves have shifted.

6. For each of the following total cost curves, determine if the technology exhibits increasing, decreasing, or constant returns to scale.
a. TC(q) = q2
b. TC(q) = √q
c. TC(q) = 2q
d. TC(q) = 2q + 4

7. A competitive firm has a short-run total cost curve STC(q) = 0.1q2 + 10q + 40.
a. Identify SVC and SFC.
b. Find and plot the SAC and SAVC curves.
c. For this function, the SMC curve is given by SMC(q) = 0.2q + 10. Include this curve in your diagram for part b.
d. Write the equation for the firm’s short-run supply curve and indicate it in the above graph.
e. Find the firm’s break-even price pe (at which profits are zero) and its shut-down price ps

8. Abby is the sole owner of a nail salon. Her costs for any number of manicures (q) are given by
TC = 10 + q2,
AC = 10
q + q,
MC = 2q.
The nail salon is open only 2 days a week – Wednesdays and Saturdays. On both days, Abby acts as a price taker, but price is much higher on the weekend. Specifically, P = 10 on Wednesdays and
P = 20 on Saturdays.
a. Calculate how many manicures Abby will perform on each day.
b. Calculate Abby’s profits on each day.
c. The National Association of Nail Salons has proposed a uniform pricing policy for all its members. They must always charge P = 15 to avoid the claim that customers are being “ripped
off” on the weekends. Should Abby join the Association and follow its pricing rules?

9. The following figure depicts the short-run per unit cost curves for a competitive firm. If the market price is p◦, indicate the firm’s revenue, STC, SVC, and profits.

10. For the firm in problem 9, indicate the firm’s short-run supply curve. What will be the effect of an increase in fixed costs on the firm’s supply curve and on its profits?

11. Suppose there are two technologies for producing steel. Under technology A, a firm’s short-run total cost curve is STCA(q) = 1
2 q2 + 100q + 10 (for which SMCA(q) = q + 100), and using technology B it is STCB (q) = 2q2 + 6 (SMCB (q) = 4q). Assuming there are 100 firms using technology A and 400 using B, determine the short-run market supply curve.

What has the economic growth rate looked like over the past 50 to 100 years? What are some of it’s major or important industries? What are some major businesses (corporations), if any? What is your assessment of how democratic the nation is compared to other nations?

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Economic growth

Choose a nation (anywhere in the world) so long as it is possible for you to gather the information you need about it and then write facts and analysis of it.

Questions:
Nation:
Population:
GDP:
GDP per capita:
Unemployment rate:
Inflation rate:
Official currency:

What has the economic growth rate looked like over the past 50 to 100 years?
What are some of it’s major or important industries?
What are some major businesses (corporations), if any?
What is your assessment of how democratic the nation is compared to other nations?
What is your assessment of how corrupt this nation’s government is or is not compared to other nations?

(Note: corruption, stability, and political freedom all play a significant role in a nation’s economic health.)

What is your assessment of how high the tax burden is on businesses and individuals in this nation?
What is your assessment of the degree of government involvement in the economy in this nation? (Low to High).
What is your assessment of the strengths and weaknesses of this nation’s economic system? (Are there major problems? Are there major advantages?)
Share anything else you would like to say about this nation and its economy.

Explain Monetary Policies. Explain how the central bank can use monetary policies to solve unemployment, using the Philips curve.

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Monetary Policy

Explain Monetary Policies (expansionary and contractionary)
Explain how the central bank can use monetary policies to solve unemployment, using the Philips curve.

Prepare a management report outlining your strategic recommendations for Ooni. Your report should draw on appropriate B302 module material and provide evidence that supports your recommendations.

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Management report outlining your strategic recommendations

Assignment tasks

The EMA comprises four parts. You must complete all parts.

Part 1
Prepare a management report outlining your strategic recommendations for Ooni. Your report should draw on appropriate B302 module material and provide evidence that supports your recommendations.

Your answer should be no more than 1000 words. (30 marks)

Part 2
Watch the video Reflecting on implementation in Part 3 of the Collaborative activity subsection 3.1.

Prepare a second management report that identifies three implementation issues that Ooni must address if it is to implement your Part 1 recommendations effectively. This report should draw on appropriate B302 module material and support its arguments with evidence.

Your answer should be no more than 1000 words. (30 marks)

Part 3
Reflect on and evaluate the process that led to the development of the strategic recommendations reported in

Part 1.
Your answer should be no more than 600 words. (25 marks)

Part 4
Reflect on and evaluate the skills you have developed while working through Block 5 and the collaborative activity.

Your answer should be no more than 400 words. (15 marks)

Explain fiscal and monetary policies from various perspectives; provide arguments from your own perspective, supported by analysis, for a policy change that should be adopted

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Fiscal and monetary policies

Explain fiscal and monetary policies from various perspectives; provide arguments from your own perspective, supported by analysis, for a policy change that should be adopted

What role did the policies of F.D. Roosevelt play in the recovery from the Great Depression in the United States?

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The Great Depression

What role did the policies of F.D. Roosevelt play in the recovery from the Great Depression in the United States?

Have you ever engaged in moral hazard – taking a bigger risk then you normally would – with a financial decision? Were there any negative consequences to this moral hazard for you or someone else?

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Week 3

Watch the video below. Think critically about this question: Have you ever engaged in moral hazard – taking a bigger risk then you normally would – with a financial decision? Were there any negative consequences to this moral hazard for you or someone else?

Identify one graph or model from the required readings capable of illustrating the data set in the analytic analysis. Frame the relevance of the topic and the analytic analysis of a data set for the reader.

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Analytic Paper – Strat Econ Critique

REVISION
Stratification economics are how intergroup disparities in economics can be studied with sociological and social-psychological concepts of racial bias. Rather than focus merely on human capital deficiencies, stratification economics recognize the differences in structural resources that account for economic inequality.

Critical race theory is a cross-disciplinary intellectual and social movement of civil-rights scholars and activists who seek to examine the intersection of race, society, and law in the United States and to challenge mainstream American liberal approaches to racial justice.

The intersectional experience is greater than the sum of racism and sexism, any analysis that does not take intersectionality into account cannot sufficiently address the particular manner in which Black women are subordinated.

Prove how race and intersectionality impact economic opportunity in a way that is underacknowledged. Prove the constraints of mainstream economics in consideration of critical race theory. Conduct an analysis that challenges discourses trumpeting the emergence of a post-racial society in which previous barriers to attaining equal economic outcomes have been eliminated.

Use seminal sources of literature to support the relevance of the topic and that add authority to the analytic analysis. Support with Literature/References:
• the reason(s) the topic adds to the existing literature;
• the reason(s) the analytic analysis is important; and,
• the reason(s) the topic is appropriate for future research

Identify one graph or model from the required readings capable of illustrating the data set in the analytic analysis. Frame the relevance of the topic and the analytic analysis of a data set for the reader.

Describe the graph or model illustrating the data set in the analytic analysis. Support with Data Set/Analysis:
• the legacy of the topic;
• the reason(s) the topic is important;
• the reason(s) the topic is not important to others.

Critically analyze the following digital media discussing the limitations of formalism of the disembedded economy.

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Identifying Economic Problems – Critical Points in Contemporary Economic Theory

Contemporary economic thought is dominated by a habitual outlook, formalism, which almost completely precludes consideration of the problem of lives and livelihood. In this light, critically analyze the following digital media (you do not need to watch more than 15-minutes of the digital media) discussing the limitations of formalism of the disembedded economy.

Panic: The Untold Story of the 2008 Financial Crisis

Write a standard literature review about (Copper mediated Nucleophilic 18F fluorination of arenes).

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Standard literature

Write a standard literature review about (Copper mediated Nucleophilic 18F fluorination of arenes).