Question 1(can I have the working out for this question) Let the fixed cost for

Question

Question 1(can I have the working out for this question)

Let the fixed cost for production of a good, F, be equal to $1,000; the labor requirement to produce one unit, a, be equal to 10 hours and the wage rate, w, be $10 per hour. Let Q stand for the number of units of output. The unit cost when Q=1 is ________, and when Q=2 is________

A. $1,100 and $2,200

B. $1,100 and $750

C. $1,100 and $600

D. $1,100 and $1,500

Quesion 2(MCQ)

Using a Leontief framework, the manufacturing of Electric generators (E) takes 5 units of capital (K) and 2 units of labor (L). The manufacturing of footwear (F) takes 2 unit of K and 2 units of L. If the supply of K is 100 and the supply of L is 70 then the full-employment outputs for E and F respectively are:

A. QE = 20; QF = 25

B. QE = 10; QF = 50

C. QE = 10; QF = 25

D. QE = 90; QF = 30

Question 3. There are two sectors Cars (C) and Wheat (W). Capital (K) is specific to C. The rental price of capital will increase when

A. MPK decreases

B. PC increases

C. K increases

D. WC decreases

Question 4. There are two sectors: Cars (C) and Wheat (W). Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then

A. Both owners of KC and owners of AW will benefit

B. Only owners of AW will benefit

C. Only owners of KC will benefit

D. Neither owners of KC nor owners of AW will benefit

Explanation / Answer

1

TC = TFC + TVC

TFC = $1000. TVC for one uni of output = 10*10 =100

TVC = 100*Q, where Q is the output. TC = 1000+100*Q

TC for Q=1, TC = 1000+100 =1100.

TC for Q= 2 , TC =1000+200 =1200.

AC when Q= 1is 1100, whenQ =2, 1200/2 =$600.

So, the correct option is C.

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