ECO333H1 Final: Factory City Model

71 views2 pages

emeraldpanda623

20 Sep 2018

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

First determine the price of shirts in rural area and working hours. Price of shirts sale in the factory=wage+other inputs/outputs: at suburban and rural boundry (rent=0), residents are indifferent between buying shirts and home production. Rural residence make shirts at home because costs is lower. Suburban residents live close enough that the net shirt price is lower than home production. Net price of shirts=shirt costs + travel costs. Land rent is the amount that prevent residence from receiving more than equilibrium utility. (residual:land. Rent=production of bread-consumption-price of factory shirts) total hours allocated to production of bread and travel time, this must equal to working hour of rual area. Their wage perday is no more than required consumption of bread l. left over amount goes into shirt and land rent. Travel costs for suburban and factory workers living at x=0 is zero.

Related Questions

1. When economists speak of "marginal," they mean
a. Opportunity.
b. Scarcity.
c. Incremental.
d. Unimportant.

2. Managers undertake an investment only if
a. Marginal benefits of the investment are greater than zero.
b. Marginal costs of the investment are greater than marginal benefits of the investment.
c. Marginal benefits are greater than marginal costs.
d. Investment decisions do not depend on marginal analysis.

3. A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15. Raw materials are ordered weekly, and they cost $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250. How do the overall costs break down?
a. Total variable cost is $17,000; total fixed cost is $2,250; total cost is $19,250.
b. Total variable cost is $12,000; total fixed cost is $7,250; total cost is $19,250.
c. Total variable cost is $5,000; total fixed cost is $14,250; total cost is $19,250.
d. Total variable cost is $5,000; total fixed cost is $2,250; total cost is $7,250.

4. Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units. Which of the following is true if marginal cost is constant?
a. FC = $100
b. FC = $200
c. FC = $300
d. FC = $400

5. A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare
a. The total benefits gained from the two factories to the total costs of running the two factories.
b. The incremental benefit expected from the second factory to the total costs of running the two factories.
c. The incremental benefit expected from the second factory to the cost of the second factory.
d. The total benefits gained from the two factories to the incremental costs of running the two factories.

6. A firm is thinking of hiring an additional worker to their organization who they believe can increase total productivity by 100 units a week. The cost of hiring him or her is $1,500 per week. If the price of each unit is $12,
a. The MR of hiring the worker is $1,500.
b. The MC of hiring the worker is $1,200.
c. The firm should not hire the worker since MB < MC.
d. All the above

7. A retailer has to pay $9 per hour to hire 13 workers. If the retailer only needs to hire 12 workers, a wage rate of $7 per hour is sufficient.
What is the marginal cost of the 13th worker?
a. $117
b. $9
c. $33
d. $84

8. If a firm's average cost is rising, then
a. Marginal cost is less than average cost.
b. Marginal cost is rising.
c. Marginal cost is greater than average cost.
d. The firm is making an economic profit.

9. After the first week of his MBA Managerial Economics class, one of your pharmaceutical sales representatives accuses you of committing the sunk-cost fallacy by refusing to allow him to reduce price to make what he considers to be a really tough sale. Which of the following suggests the sales representative may be right?
a. Most of the costs of drug development are sunk, not fixed.
b. Sales representatives are paid a sales commission on revenue, so they don't care about the costs of drug development.
c. Sales representatives don't worry that a low price today may make it more difficult for the company's other sales representatives to charge higher prices to their customers, tomorrow.
d. Sales representatives think only about one thing, sales.

10. A company is producing 15,000 units. At this output level, marginal revenue is $22, and the marginal cost is $18. The firm sells each unit for $48 and average total cost is $40.
What can we conclude from this information?
a. The company is making a loss.
b. The company needs to cut production.
c. The company needs to increase production.
d. Not enough information is provided.

home / study / business / economics / economics questions and answers / 1) workers in one country are more productive than workers in another country because -they ...

Your question has been answered

Let us know if you got a helpful answer. Rate this answer

Question: 1) Workers in one country are more productive than workers in another country because -they have ...

1) Workers in one country are more productive than workers in another country because

-they have more complementary factors to work with.

-they have fewer complementary factors to work with.

-they are better motivated and paid.

2) Conservative economists would like to help younger workers get work experience by

-setting up a government jobs program.

-raising the minimum wage rate.

-lowering the minimum wage rate.

-passing a law requiring employers to hire teenagers ahead of older workers who are equally qualified.

3) The Supreme Court's "rule of reason"

-has been applied since the time of the Civil War.

-has been applied since 1945.

-was applied from 1911 to 1945.

-has been applied since 1970.

4) Which is the smallest American labor union?

-United Auto Workers

-The International Brotherhood of Teamsters

-The National Education Association

-The Service Employees International Union

5) The Change to Win coalition recently mounted a national recruiting drive, primarily targeting _______.

-All of these jobs were targeted

-cashiers

-janitors

-dishwashers

6) The demand for labor is

-determined by the supply of labor.

-determined by the wage rate.

-its marginal revenue product schedule.

-higher at lower wage rates.

7) Economic rent is associated with

-low wages.

-agricultural workers.

-factory workers.

-high wages.

8) Which statement is true?

-The most important influence on a firm's demand for a factor of production is the demand for the final product.

-All of the statements are true.

-A firm will keep hiring more and more of a resource up to the point at which its MRP is equal to its price.

-If the MRP of the last worker hired is higher than the wage rate, the firm has hired too few workers.

9) Amelia Earhart's nominal wages rose from $40,000 to $50,000, while the CPI rose by 20%. Her real wages

-rose.

-fell.

-cannot be calculated with the available information.

-stayed the same.

10) Which of the following is NOT an example of a vertical merger?

-The merger of two computer companies

-The merger of an automobile company and a tire company

-The merger of a computer company and a microelectronics chip company

-The merger of a shoe producer and a leather producer

11) The demand for a resource rises as

-its productivity falls and prices of substitutable resources falls.

-its productivity rises and the prices of substitutable resources falls.

-its productivity rises and the relative prices of substitutable resources rises.

-its productivity falls and the relative prices of substitutable resources falls.

12) Interlocking directorates were expressly forbidden under the

-neither the Sherman Act nor the Clayton Act.

-both the Sherman and Clayton Acts.

-Clayton Act.

-Sherman Act.

13) A firm's demand for labor is

-its MRP schedule.

-determined by the going wage rate.

-shaped mainly by the supply of labor.

14) If unions are successful in negotiating a wage higher than the market equilibrium wage, and also guarantee employers that they can hire as many labor hours as they desire per week at the union wage,

-all workers who join the union will be guaranteed a job.

-the quantity of labor demanded will exceed the quantity supplied at the union wage.

-the quantity of labor demanded will equal the quantity supplied at the union wage.

-the quantity of labor demanded will fall short of the quantity supplied at the union wage.

15) Which of the following offers the best example of derived demand?

-An increase in the demand for cars causes an increase in the demand for gasoline.

-An increase in the demand for movie tickets causes an increase in the demand for popcorn.

-A decline in the demand for cars causes an increase in the demand for bus rides.

-An increase in demand for movie tickets causes an increase in the demand for movie theatre workers.

16) A "bill of rights" for union members and a provision of union election procedures were two of the main provisions of the _____ Act.

-Landrum-Griffin

-Sherman Antitrust

-National Labor Relations

-Taft-Hartley

17) The decision to bring suit in an antitrust case is usually made by

-the Supreme Court or a lower federal court.

-the injured party.

-the Department of Commerce.

-the Department of Justice.

18) At its peak labor union membership was about _____% of the labor force.

-35

-45

-15

-25

19) Combinations in restraint of trade are prohibited by

-the Sherman Act.

-the Federal Trade Commission Act.

-The Clayton Act.

20) Which statement is true?

-American manufacturing wages are the highest in the world.

-American manufacturing wage rates are the lowest of any industrial country.

-Our manufacturing wage rates are the second highest in the world.

-None of the statements are true. MICROECONOMIC

lilacgnat950

Read the articles and consider two people, Mon and Shaman, that can produce 2 goods, shrimp and mobile apps.

If Mon and Shaman devoted themselves to shrimp and mobile app production, the chart below shows how much each person can produce per hour.

Complete the first table by showing how many shrimp and mobile apps each person would produce if they did not specialize.

	Hours worked per year			Total amount produced if each person devotes all their working hours per year to each good.
		Shrimp per hour	Mobile Apps per hour	Total Shrimp	Total Mobile Apps
Mon	3500	50	1
Shaman	2000	10	5

In a world hungry for cheap shrimp, migrants labor overtime in Thai sheds

By Jason Motlagh, Published: September 19, 2012

Jason Motlagh/For The Washington Post - Burmese migrant workers peel shrimp at a processing factory in Samut Sakhon province in Thailand. High standards allow the factory to export its seafood to the United States.

MAHACHAI, Thailand â At an age when she should have been in a classroom, Thazin Mon discovered her knack for peeling shrimp. To help support her Burmese migrant family, the 14-year-old pulled 16-hour shifts, seven days a week, for less than $3 a day. âI am uneducated, so I work. I have to work bravely,â she says.

Although she was the best peeler in the factory, speed was never enough. Mon was beaten if she slowed down, she said, and when she asked for a day off to rest hands swollen with infection, her boss kicked her and threatened rape.

Thanks to a bottomless appetite for cheap shrimp in the West, Burmese migrants such as Mon are the backbone of a Thai shrimp industry that is the worldâs third largest. The United States is Thailandâs top customer, accounting for a third of the countryâs annual shrimp exports.

Rights groups say that overseas demand for shrimp products in greater volume has fueled a culture of exploitation in the Thai industry. They insist that the failure of foreign companies to sufficiently verify the origin of the shrimp they import allows abuses to persist.

âIf you look at the cost of shrimp overseas, itâs very, very cheap, and that comes from the exploitation inherent in the shrimp industry,â says Andy Hall, an expert on migration at Mahidol University who tracks Burmese labor in the Thai seafood industry.

Brisk business with major U.S. retailers such as Wal-Mart, Costco, Samâs Club and Red Lobster pumps more than $1 billion in revenue each year into the Thai economy, the second largest in Southeast Asia. As Thai living standards have risen, a shortage of unskilled labor has attracted tens of thousands of Burmese migrants looking to escape the poverty and job scarcity that has gripped their homeland for decades.

Most head to Samut Sakhon province, the heart of the processing industry just south of the capital, Bangkok, where modern facilities line the highway alongside fast-food chains and car dealerships. The more prominent factories are the size of football fields, with neon signage and billboards that feature smiling children. But thereâs a darker side behind the scenes, activists say.

Of an estimated 400,000 migrants at work in the province, only about 70,000 are legally registered. The rest are employed illegally in anonymous peeling sheds that supply the larger companies that must fill massive orders from abroad. At this lower end of the supply chain, according to migrant activists, crooked brokers and employers trap scores of Burmese in abusive conditions tantamount to slavery, particularly in the shrimp industry.

âThe small factory owners know that most of their workers are undocumented, so they can control the workforce however they want â such as locking workers in until they finish their work,â says Sompong Sakaew, a labor activist based in Mahachai, the provincial capital. âThere are also teenagers between 12 and 17 years old in the workforce.â

Sold into waking nightmare

Problems for Burmese migrants typically start as soon as they link up with brokers who promise steady work and a decent salary, only to sell them into a nearly inescapable cycle of debt bondage.

Min Oo, 28, a Burmese farmer who lost his home in a flood, said he paid a broker the equivalent of $500 to smuggle him across the border to Samut Sakhon, with the guarantee of a minimum-wage (about $10 a day) factory job. Instead, he said, the broker sold him into a waking nightmare, with 18-hour workdays in a shrimp-processing factory and net earnings of no more than $20 a week, leaving almost nothing to send home.

In some cases, migrant workers and rights groups allege, police officials or their relatives hold an ownership stake in unregistered peeling sheds. More commonly, the critics say, the authorities or those they protect shake down undocumented workers for bribes to supplement their incomes, knowing that the migrants would rather pay up on the spot than be deported to Burma.

Despite occasional police action and robust anti-trafficking laws, Sakaew, the labor activist, estimates that fully a quarter of the 1,200 to 1,300 factories in Samut Sakhon province are unregistered and, therefore, ripe for abuse. With so much profit-induced apathy on the Thai side, activists say reform pressure must come from Western companies whose trade partnerships drive the shrimp industry.

Codes of conduct

It is difficult to establish precise links between the larger Thai companies that process shrimp of dubious origin and the Western companies whose consumers increasingly demand ethical sourcing.

To do business overseas, Thai companies must qualify for membership in the Thai Frozen Foods Association, which adheres to globally recognized codes of conduct and carries out unscheduled inspections. Spokesman Arthon Piboonthanapatana asserts that anyone found guilty of labor -abuses would be expelled. In more than three years of inspections, he said, this has never happened.

âIf the shrimp is from TFFA members, I can 100 percent guaranteeâ that it is produced without labor exploitation, he said.

But critics say that until the Thai shrimp industry requires larger factories to provide records of lower-level suppliers and follows through with random inspections, the shrimp it exports will remain tainted by human trafficking and labor abuses.

For the past three years, the State Department has given Thailand a poor grade on human trafficking, citing it among countries that do not fully comply with the minimum standards for efforts to combat the problem.

After the release of the departmentâs report in 2012, Thai Foreign Minister Surapong Tovichakchaikul said his country would improve its performance by strengthening cooperation among agencies tasked with fighting human trafficking.

Motlagh reported with a grant from the Pulitzer Center on Crisis Reporting.

More world news coverage: - Turmoil in Egypt stalls talks on U.S. aid - Suicide blast kills 12 near Afghan capitalâs international airport - U.S. troops to cut missions with Afghan forces - Read more headlines from around the world.

Google reportedly acquiring Waze app for $1.3 billion

News ends months of rumors on deals with Apple, Facebook, or Google, according to Globes; Waze source refuses to comment

By David Shamah June 9, 2013, 7:20 pm

Waze co-founder Uri Levine at a Jerusalem conference in May (photo credit: Flash90)

After dating at least three of the biggest tech companies in the world, it appeared Sunday night that Waze was finally getting the ring â one worth $1.3 billion, according to a report in the Israeli business newspaper Globes.

Thatâs the sum Google has reportedly agreed to pay for Waze, the Raâanana-based crowdsourced driving and navigation app with 50 million users around the world. The figure is $300 million higher than Facebook reportedly offered to pay for the firm earlier this year.

A company source contacted by The Times of Israel had no comment on whether talks with Google (or any other party) were on or off. âWe donât comment on rumors and speculation in general,â the source said.

The purchase, reported by Globes citing an anonymous source, would be the biggest buyout yet for an Israeli consumer firm, far outstripping Face.comâs $60-million sale to Facebook last year. Indeed, it is believed that it would be the biggest sum paid for any app, ever.

In May, it was rumored that Facebook had offered nearly $1 billion for Waze, but negotiations broke down several weeks later, apparently over Facebookâs insistence that Waze move its R&D from Israel to one of Facebookâs existing facilities, in the US or Britain. Several weeks later, it was reported that Google was interested in Waze, and that the search giant had offered as much as $1 billion for the company as well.

Previous rumors â earlier this year â had Apple as a prospective Waze buyer, with an offer of $400 million for the Israeli company.

A Google-Waze deal would likely not get snagged over location; Google already has several large R&D facilities in Israel, and employs hundreds of engineers here. Integrating the already existing Waze group into the Google infrastructure would be much simpler than getting Waze integrated with Facebook, local social media expert Yotam Tavor told The Times of Israel.

However, it appears that location wasnât the only issue. As recently as several weeks ago â amid the rumors that Google was poised to make an offer for Waze â company insiders were quoted in news reports as saying that members of the Waze board of directors believed that they would be selling themselves short if they âsettledâ for $1 billion â and that they could raise much more with an IPO. How much Waze would fetch in an IPO isnât clear, but if the latest report is true, Google apparently agrees with the Waze officials opposed to a sale.

Google already has its own mapping and driving app, and competes with Waze, but the latter dominates in most of the markets where Googleâs Navigator app is used. As such, Google and Waze are competing in the same space, but most users agree that the Waze app is much more elegant and user-friendly than the Google one.

In addition, Waze has built an active and loyal social network, which is highly engaged with the app, as well as a built-in mobile ad platform. In its latest version, it supplies Google Maps-like recommendations â making it a perfect match for Google, Tavor said.

Information

Remove flag

Information text

	The Outcome Without Trade		The Outcome With Trade				The Gains From Trade
	What they Produce and Consume if they do not specialize according to comparative advantage.		What They Produce if they fully specialize in one good.	What They Trade	What They Consume		The Increase in Consumption
Mon	1.)	Point A	5.)	9.) 10.)	13.)	Point A^*	17.)	A to A^*
	2.)		6.)		14.)		18.)
Shaman	3.)	Point B	7.)	11.) 12.)	15.)	Point B^*	19.)	B to B^*
	4.)		8.)		16.)		20.)

Suppose Mon and Shaman do not specialize according to comparative advantage and exchange but instead choose to be self-sufficient.

Further, they devote half of their hours in each year to each good and they consume everything they produce domestically.

After specialization according to comparative advantage, they exchange 5,000 apps for 75,000 shrimp.

Compute values for the numbered cells.

Question 29

Not yet answered

Marked out of 6.00

Flag question

Question text

What is the opportunity cost of producing shrimp for Mon?

Answer:

Question 30

Not yet answered

Marked out of 6.00

Flag question

Question text

What is the opportunity cost of producing shrimp for Shaman?

Answer:

Question 31

Not yet answered

Marked out of 6.00

Flag question

Question text

What is the opportunity cost of producing Mobile Apps for Mon?

Answer:

Question 32

Not yet answered

Marked out of 6.00

Flag question

Question text

What is the opportunity cost of producing Mobile Apps for Shaman?

Answer:

Question 33

Not yet answered

Marked out of 6.00

Flag question

Question text

1.) Before specialization, how much shrimp will Mon produce?

Answer:

Question 34

Not yet answered

Marked out of 6.00

Flag question

Question text

2.) Before specialization, how many mobile apps will Mon produce?

Answer:

Question 35

Not yet answered

Marked out of 6.00

Flag question

Question text

3.) Before specialization, how much shrimp will Shaman produce?

Answer:

Question 36

Not yet answered

Marked out of 6.00

Flag question

Question text

4.) Before specialization, how many mobile apps will Shaman produce?

Answer:

Question 37

Not yet answered

Marked out of 3.00

Flag question

Question text

5.) If they specialize according to comparative advantage, how much shrimp will Mon produce?

Answer:

Question 38

Not yet answered

Marked out of 6.00

Flag question

Question text

6.) If they specialize according to comparative advantage, how many mobile apps will Mon produce?

Answer:

Question 39

Not yet answered

Marked out of 6.00

Flag question

Question text

7.) If they specialize according to comparative advantage, how much shrimp will Shaman produce?

Answer:

Question 40

Not yet answered

Marked out of 6.00

Flag question

Question text

8.) If they specialize according to comparative advantage, how many mobile apps will Shaman produce?

Answer:

Question 41

Not yet answered

Marked out of 6.00

Flag question

Question text

9.) After specialization according to comparative advantage, they exchange 5,000 apps for 75,000 shrimp, i.e. each country sells some of the good in which they have a comparative advantage for the good in which they have a comparative disadvantage.

How much shrimp will Mon trade?

Answer:

Question 42

Not yet answered

Marked out of 6.00

Flag question

Question text

10.) How many mobile apps will Mon trade?

Answer:

Question 43

Not yet answered

Marked out of 6.00

Flag question

Question text

11.) How much shrimp will Shaman trade?

Answer:

Question 44

Not yet answered

Marked out of 6.00

Flag question

Question text

12.) How many mobile apps will Shaman trade?

Answer:

Question 45

Not yet answered

Marked out of 6.00

Flag question

Question text

13.) After trade, how much shrimp will Mon consume?

Answer:

Question 46

Not yet answered

Marked out of 6.00

Flag question

Question text

14.) After trade, how many mobile apps will Mon consume?

Answer:

15.) After trade, how much shrimp will Shaman consume?

Answer:

Question 48

Not yet answered

Marked out of 6.00

Flag question

Question text

16.) After trade, how many mobile apps will Shaman consume?

Answer:

Question 49

Not yet answered

Marked out of 6.00

Flag question

Question text

17.) After trade, Monâs shrimp consumption increased by how much?

Answer:

Question 50

Not yet answered

Marked out of 6.00

Flag question

Question text

18.) After trade, Monâs mobile app consumption increased by how much?

Answer:

Question 51

Not yet answered

Marked out of 6.00

Flag question

Question text

19.) After trade, Shamanâs shrimp consumption increased by how much?

Answer:

Question 52

Not yet answered

Marked out of 6.00

Flag question

Question text

20.) After trade, Shamanâs mobile consumption increased by how much?

Answer:

Question 53

Not yet answered

Marked out of 6.00

Flag question

Question text

What is the total amount of shrimp produced if Mon fully specializes in shrimp production?

Answer:

Question 54

Not yet answered

Marked out of 6.00

Flag question

Question text

What is the total amount of shrimp produced if Shaman fully specializes in shrimp production?

Answer:

Question 55

Not yet answered

Marked out of 6.00

Flag question

Question text

How many mobile apps will Mon produce if she fully specializes in producing mobile apps?

Answer:

Question 56

Not yet answered

Marked out of 6.00

Flag question

Question text

How many mobile apps will Shaman produce if he fully specializes in producing mobile apps?

Answer:

raspberrytiger386

ECO333H1 Final: Factory City Model

Document Summary

Get access

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Related Documents

ECO333H1 Lecture Notes - Lecture 2: Maple Syrup, Utility, Marginal Cost

ECO333H1 Study Guide - Midterm Guide: Hectare, Economic Equilibrium, European Route E20

REM 520 Lecture Notes - Lecture 4: The Book Of Lost Tales, Transaction Time, Opportunity Cost

Related Questions