Podcast
Questions and Answers
How much could Pat save when producing 900 meals if the capital stock was not fixed?
How much could Pat save when producing 900 meals if the capital stock was not fixed?
What does the formula $MRTSLK = \frac{w}{r}$ represent in production?
What does the formula $MRTSLK = \frac{w}{r}$ represent in production?
If the price of labor increases from $16 to $36, how much more does Pat have to pay to produce 600 meals?
If the price of labor increases from $16 to $36, how much more does Pat have to pay to produce 600 meals?
Which type of graduate does Johnson Tools employ when producing hammers, and why?
Which type of graduate does Johnson Tools employ when producing hammers, and why?
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What is the change in consumer surplus that Molly experiences after the tax implementation?
What is the change in consumer surplus that Molly experiences after the tax implementation?
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What is the fixed cost of each unit of capital, according to the content?
What is the fixed cost of each unit of capital, according to the content?
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How much tax revenue does the government collect from Molly?
How much tax revenue does the government collect from Molly?
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What is the marginal product of a university graduate at Johnson Tools?
What is the marginal product of a university graduate at Johnson Tools?
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What can be concluded about the relationship between tax revenue and loss in consumer wellbeing?
What can be concluded about the relationship between tax revenue and loss in consumer wellbeing?
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How many units of labor does Pat need to produce 900 meals efficiently with fixed capital?
How many units of labor does Pat need to produce 900 meals efficiently with fixed capital?
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Compensating variation is considered negative when what occurs?
Compensating variation is considered negative when what occurs?
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What would be the production function form used in the example provided?
What would be the production function form used in the example provided?
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If demand is perfectly elastic, what is the consumer surplus?
If demand is perfectly elastic, what is the consumer surplus?
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What does consumer surplus measure?
What does consumer surplus measure?
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Which statement about compensating variation is true?
Which statement about compensating variation is true?
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What is the definition of production technology?
What is the definition of production technology?
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How many units of y would be needed for Molly to maintain her utility if her consumption of x is reduced to 0?
How many units of y would be needed for Molly to maintain her utility if her consumption of x is reduced to 0?
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What is the nature of John's preferences for books and movies if his MRS is constant regardless of the consumption amounts?
What is the nature of John's preferences for books and movies if his MRS is constant regardless of the consumption amounts?
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What type of preferences are described that lead to zero income effect for good x?
What type of preferences are described that lead to zero income effect for good x?
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If the marginal utilities for goods x and y are such that MUx/px > MUy/py, what will a consumer likely do?
If the marginal utilities for goods x and y are such that MUx/px > MUy/py, what will a consumer likely do?
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What does the downward sloping line containing bundles A, B, and C indicate about the consumer's preferences?
What does the downward sloping line containing bundles A, B, and C indicate about the consumer's preferences?
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How is the income-consumption curve characterized in cases of quasilinear preferences?
How is the income-consumption curve characterized in cases of quasilinear preferences?
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Why will Anne and Bob not successfully trade peanuts for walnuts?
Why will Anne and Bob not successfully trade peanuts for walnuts?
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What does it mean if indifference curves can only be upward sloping if one of the goods is considered a 'bad'?
What does it mean if indifference curves can only be upward sloping if one of the goods is considered a 'bad'?
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Given prices px=3 and py=1, how much additional good x would a consumer demand with a $30 income increase?
Given prices px=3 and py=1, how much additional good x would a consumer demand with a $30 income increase?
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What is a key property of quasilinear preferences in terms of the shape of the indifference curves?
What is a key property of quasilinear preferences in terms of the shape of the indifference curves?
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What could be inferred about the utility function U(B, M) = 3B + M?
What could be inferred about the utility function U(B, M) = 3B + M?
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What does the declining marginal rate of substitution (MRS) imply about the consumer's preferences?
What does the declining marginal rate of substitution (MRS) imply about the consumer's preferences?
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If both goods x and y are normal goods, what does this imply about their demand functions?
If both goods x and y are normal goods, what does this imply about their demand functions?
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What calculation determines the optimal amount of good y after finding the amount of good x purchased?
What calculation determines the optimal amount of good y after finding the amount of good x purchased?
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If Molly has 36 units of x and 8 units of y, what is her utility calculated from the provided utility function?
If Molly has 36 units of x and 8 units of y, what is her utility calculated from the provided utility function?
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What happens to the demand for good x when the income of a consumer increases while maintaining quasilinear preferences?
What happens to the demand for good x when the income of a consumer increases while maintaining quasilinear preferences?
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What does the relationship between MP and AP indicate?
What does the relationship between MP and AP indicate?
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What characterizes the isoquants for perfect complements?
What characterizes the isoquants for perfect complements?
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How does a firm react to changes in input prices when utilizing perfect substitutes?
How does a firm react to changes in input prices when utilizing perfect substitutes?
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What occurs in a production function with decreasing returns to scale?
What occurs in a production function with decreasing returns to scale?
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What condition must hold for a firm to effectively allocate workers between two plants?
What condition must hold for a firm to effectively allocate workers between two plants?
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What happens to the marginal rate of technical substitution (MRTS) in a firm with declining MRTS?
What happens to the marginal rate of technical substitution (MRTS) in a firm with declining MRTS?
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What is a requirement for the optimal input combination in the long run for perfect complements?
What is a requirement for the optimal input combination in the long run for perfect complements?
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What indicates a cost-minimizing input combination in the long run?
What indicates a cost-minimizing input combination in the long run?
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What characterizes an inferior good in terms of income elasticity of demand?
What characterizes an inferior good in terms of income elasticity of demand?
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Which statement is true regarding the budget line equation M = pxx + pyy?
Which statement is true regarding the budget line equation M = pxx + pyy?
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When consumers aim to maximize utility, they typically want to buy what?
When consumers aim to maximize utility, they typically want to buy what?
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The optimal bundle for consumption is characterized by which condition?
The optimal bundle for consumption is characterized by which condition?
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What does the term 'Bang for the Buck' refer to in consumer choice?
What does the term 'Bang for the Buck' refer to in consumer choice?
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What happens to the slope of the budget line if the price of good x decreases while income remains constant?
What happens to the slope of the budget line if the price of good x decreases while income remains constant?
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How would you define a perfect substitute regarding the Marginal Rate of Substitution (MRS)?
How would you define a perfect substitute regarding the Marginal Rate of Substitution (MRS)?
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Which of the following must be true about goods at different income levels?
Which of the following must be true about goods at different income levels?
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