Answer: The correct answer is "Can vary as the result of using a fixed amount of plant and equipment more or less intensively".
Explanation: In the short run, output: Can vary as the result of using a fixed amount of plant and equipment more or less intensively.
In a short-term context, production can only vary as a result of more intensive use of the plant producing more or less intensive use of the plant producing less.
Question: The question is incomplete. See the full question below and the answer.
You are an up-and-coming developer in downtown Seattle and are interested in constructing a building on a site you own. You have collected four bids from prospective contractors. The bids include both a cost ($millions) and time to completion (months):
Contractor Cost Time
A 100 20
B 80 25
C 79 28
D 82 26
The problem now is to decide which contractor to choose. B has indicated that for another $20 million, he could do the job in 18 months, and you have said that you would be indifferent between that bid and the original proposal. In talking with C, you have indicated that you would just as soon pay her an extra $million if she could get the job done in 26 months. Who gets the job? Explain your reasoning. (It may be convenient to plot the four alternatives on a graph.)
Answer:
See the explanation for the answer and find attached of the graph.
Explanation:
So we draw a regression line of Time vs Cost and best fit a curve based on the data given, given in the above figure. The four alternatives are marked in the figure as well. Our main objective is to reduce both time and cost, but that might not be possible So the best thing would be to look for alternatives which lie below the line. If C gets an extra million, then that point would come below the regression line, and it would be a better alternative than D, because for the same time we are getting the job done at a cheaper cost.
Also if B is paid extra 20 million, that point also comes below the regression line, and hence will be a better alternative than A because for the same cost again we are getting the job done earlier. We need to choose between B and C. Now in order to optimise both cost and time, we need to choose a point close to the middle point of the regression line segment in 1st quadrant. We see that C is much more closer to the middle point and hence seems like a better option.
So we choose C as our contractor if we consider B's alternative bid, but if we do not consider B's alternative bid and stick to the original one, we choose B as our contractor.
Answer:
The student must purchase the number of items in which the price exceeds the ability of the student to pay.
<em>The number of bags he will purchase at the price of $4, is 2, because the willingness to purchase is $4.
</em>
The solution is therefore 2 sachets of jelly beans.
Whenever the student eats 2 bags of jelly beans at $4, the consumer surplus is determined as follows;
<em>Consumer Surplus</em>
<em>= ($5-$4) + ($4-$4)</em>
<em>= $1.</em>
Answer:
variable cost of producing is $72,200
Explanation:
given data
total costs = 7,900
production @ $12
fixed = $22600
to find out
variable cost of producing each bat
solution
we know here that
total costs at 7,900 production @ $12 then that would be
= 7,900 × 12 = 94,800
so now we can say variable will be here = $94,800 - $22600
so variable = 72200
hence variable cost of producing is $72,200
Answer:
The MPC is 0.8
The multiplier or k is 5
The increase in income would be $20 million.
Explanation:
The marginal propensity to consume (MPC) is the proportion of increased disposable income that consumers spend. It is a metric to quantify the induced consumption and how an increase in consumer spending occurs as a result of increase in income.
MPC is calculated as follows,
MPC = Change in consumer spending / change in income
MPC = 240 / 300
MPC = 0.8 or 80%
To calculate the multiplier, we simply use the following formula,
Multiplier or k = 1 / (1 - MPC)
k = 1 / (1 - 0.8)
k = 5
So, the expenditure multiplier for the economy would be 5.
To calculate the increase in income, we will multiply the investment amount by the expenditure multiplier.
Income increase = 4000000 * 5
Income increase = $20000000 or 20 million