# Microeconomics

##### If you pay 5,000va year fin tuition and gave up 2p, 000 a year of income to attend college then the yearly opportunity cost is
If you pay 5,000va year fin tuition and gave up 2p, 000 a year of income to attend college then the yearly opportunity cost is...
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##### Calculate TC, VC, FC, AC, AVC, and MC. Plot the AC and MC curves.b. Assume that the price of labor doubles. Calculate the new AC and MC. Plot andcompare with the previous AC and MC curves.c. Assume that total factor productivity doubles (the level of output doubles for eachinput combination). Calculate the new AC and MC. Plot and compare with theprevious AC and MC curves.d. Which two major factors affect a firm’s cost curves?
Calculate TC, VC, FC, AC, AVC, and MC. Plot the AC and MC curves. b. Assume that the price of labor doubles. Calculate the new AC and MC. Plot and compare with the previous AC and MC curves. c. Assume that total factor productivity doubles (the level of output doubles for each input combination)...
##### Consider the following table:Output(tons of wheat)Lan Inputs(acres)Labor Inputs Land Rent (Phpper acre)Labor Wage (Phpper worker)0 15 0 1200 5001 15 6 1200 5002 15 11 1200 5003 15 15 1200 5004 15 21 1200 5005 15 31 1200 5006 15 45 1200 5007 15 63 1200 500a. Calculate TC, VC, FC, AC, AVC, and MC. Plot the AC and MC curves.b. Assume that the price of labor doubles. Calculate the new AC and MC. Plot andcompare with the previous AC and MC curves.c. Assume that total factor productivity doubles (the
Consider the following table: Output (tons of wheat) Lan Inputs (acres) Labor Inputs Land Rent (Php per acre) Labor Wage (Php per worker) 0 15 0 1200 500 1 15 6 1200 500 2 15 11 1200 500 3 15 15 1200 500 4 15 21 1200 500 5 15 31 1200 500 6 15 45 1200 500 7 15 63 1200 500 a. Calculat...
##### For each of the three theories for the upward slope of the short-run aggregate-supply curve, carefullyexplain the following:a. how the economy recovers from a recession and returns to its long-run equilibrium without any policy interventionb. what determines the speed of that recovery
For each of the three theories for the upward slope of the short-run aggregate-supply curve, carefully explain the following: a. how the economy recovers from a recession and returns to its long-run equilibrium without any policy intervention b. what determines the speed of that recovery...
##### (i) In the wage equation in Example $14.4,$ explain why dummy variables for occupation might beimportant omitted variables for estimating the union wage premium.(ii) If every man in the sample stayed in the same occupation from 1981 through $1987,$ would youneed to include the occupation dummies in a fixed effects estimation? Explain.(iii) Using the data in WAGEPAN include eight of the occupation dummy variables in the equationand estimate the equation using fixed effects. Does the coefficient o
(i) In the wage equation in Example $14.4,$ explain why dummy variables for occupation might be important omitted variables for estimating the union wage premium. (ii) If every man in the sample stayed in the same occupation from 1981 through $1987,$ would you need to include the occupation dummi...
##### Use SMOKE for this exercise. (i) A model to estimate the effects of smoking on annual income (perhaps through lost work days due to illness, or productivity effects) is $\log ($ income $)=\beta_{0}+\beta_{1}$ cigs $+\beta_{2} e d u c+\beta_{3} a g e+\beta_{4} a g e^{2}+u_{1}$ where cigs is number of cigarettes smoked per day, on average. How do you interpret $\beta_{1} ?$ (ii) $\quad$ To reflect the fact that cigarette consumption might be jointly determined with income, a demand for cigaret
Use SMOKE for this exercise. (i) A model to estimate the effects of smoking on annual income (perhaps through lost work days due to illness, or productivity effects) is $\log ($ income $)=\beta_{0}+\beta_{1}$ cigs $+\beta_{2} e d u c+\beta_{3} a g e+\beta_{4} a g e^{2}+u_{1}$ where cigs is number...