University of Nebraska at Omaha Economics Discussion

Description

Question 1

Winnie the Pooh is only interested in two goods, honey (x-axis) and peanut-butter (y-axis).

(a) Use indifference curves and budget constraints to show a scenario where an increase in theprice of honey leads to an increase in Pooh’s consumption of peanut butter. Labeleverything.
(b) Does this imply that Pooh considers honey and peanut butter as complements or assubstitutes? Explain your answer.
(c) Does this imply that Pooh considers peanut butter as a normal good? Explain why or whynot.

Show your work.

Question 2

A scuba gear firm is currently producing 500 wetsuits. The increase in output per dollar spent on labor is 40 wetsuits, and the price per unit of capital is $10.

(a) What is the marginal product of capital if the firm is producing at a cost minimizing point?
(b) If the marginal product per dollar spent on capital is 50 wetsuits, then(a) Is the firm producing at a cost minimizing point?(b) If no, what would have to change?

Explain using a graph and other principles discussed in class. Show your work.



^{Have a similar assignment? "Place an order for your assignment and have exceptional work written by our team of experts, guaranteeing you A results."}

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.