Sugar (=X1, in oz) and flour (=X2, in lbs) are used to produce bread (loaves). The price of sugar is P1=$5/oz, and the price of flour is P2=$2/lb. Expenditures for this bakery are equal to $100. Graph the isocost line for this bakery.

To graph the isocost line for the bakery

A) complements in production B) substitutes in production C) neither complements nor substitutes in production D) either complements and substitutes in production, depending on the situation A) complements in production B) substitutes in production C) neither complements nor substitutes in production D) either complements and substitutes in production, depending on the situation

If the price of the input on the horizontal axis (X1) increases, then

A) the slope of the isocost line will become steeper B) the slope of the isocost line will become less steep C) the slope of the isoquant will become steeper D) the slope of the isoquant will become less steep A) the slope of the isocost line will become steeper B) the slope of the isocost line will become less steep C) the slope of the isoquant will become steeper D) the slope of the isoquant will become less steep

A) is another name for an isoquant B) has the same slope as the isoquant at all points C) has the same slope as the isoquant in equilibrium D) has a slope of MRTS A) is another name for an isoquant B) has the same slope as the isoquant at all points C) has the same slope as the isoquant in equilibrium D) has a slope of MRTS

A) do not exist in the real world B) are used together C) are used separately, one or the other D) not enough information to answer A) do not exist in the real world B) are used together C) are used separately, one or the other D) not enough information to answer

A) all combinations of two inputs that produce the same level of output B) all combinations of two outputs that produce the same level of input C) all combinations of two inputs that can be purchased at the same cost D) all combinations of two outputs that can be produced with fixed inputs A) all combinations of two inputs that produce the same level of output B) all combinations of two outputs that produce the same level of input C) all combinations of two inputs that can be purchased at the same cost D) all combinations of two outputs that can be produced with fixed inputs

A) ΔXS1U1B12S1U1B0/ΔXS1U1B11S1U1B0 B) Δ1S1U1B0/ΔXS1U1B12S1U1B0 C) ΔY/ΔX D) ΔX/ΔY A) ΔXS1U1B12S1U1B0/ΔXS1U1B11S1U1B0 B) Δ1S1U1B0/ΔXS1U1B12S1U1B0 C) ΔY/ΔX D) ΔX/ΔY

A) ceteris paribus B) sanity; balance C) a point where there is no tendency to change D) does not change when relative prices change A) ceteris paribus B) sanity; balance C) a point where there is no tendency to change D) does not change when relative prices change

Exam 5: Optimal Input Selection

If the price of flour (P₂) decreased to $1/lb, draw a graph to show how the equilibrium will change, if expenditure is constant. Will the bakery purchase more or less flour? Will the bakery purchase more or less sugar? Explain why.

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Question 1

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If the price of flour decreases to $1/lb, the equilibrium in the market will change. Assuming that the expenditure on flour is constant, the bakery will now be able to purchase more flour for the same amount of money. This means that the quantity of flour demanded by the bakery will increase, leading to a rightward shift in the demand curve for flour.

As for sugar, the decrease in the price of flour may also impact the demand for sugar. Since flour and sugar are often used together in baking, the decrease in the price of flour may lead the bakery to purchase more flour and subsequently increase their production of baked goods. This increase in production may also lead to an increase in the demand for sugar, as more sugar will be needed to maintain the same ratio of ingredients in the baked goods.

Therefore, the bakery will likely purchase more flour and more sugar as a result of the decrease in the price of flour. This is because the decrease in the price of flour has made it more affordable for the bakery to purchase, leading to an increase in the quantity demanded.

An isoquant shape is derived from:

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Question 2

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Perfect substitutes in production have:

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Showing 1 - 20 of 64

If the price of flour (P₂) decreased to $1/lb, draw a graph to show how the equilibrium will change, if expenditure is constant. Will the bakery purchase more or less flour? Will the bakery purchase more or less sugar? Explain why.

An isoquant shape is derived from:

Perfect substitutes in production have:

Draw an isoquant in the graph above, and show an equilibrium point.

Two isoquants can never:

Sugar (=X₁, in oz) and flour (=X₂, in lbs) are used to produce bread (loaves). The price of sugar is P₁=$5/oz, and the price of flour is P₂=$2/lb. Expenditures for this bakery are equal to $100. Graph the isocost line for this bakery.

Coke and Pepsi will purchase sucrose or fructose based on:

Nuts and bolts are:

If the price of the input on the horizontal axis (X₁) increases, then

Most inputs in production processes can be:

A business firm will choose which outputs to produce based on:

The isocost line:

Perfect complements are:

Perfect substitutes:

An isoquant is:

MRTS is equal to:

Define and explain MRTS carefully.

In sub-Saharan Africa, the choice of labor over machines is due to:

Labor and agrochemicals are:

Equilibrium is:

Introduction to the Economics of Agriculture

The Economics of Production

The Costs of Production

Profit Maximization

Optimal Output Selection

Supply

Supply

Demand

Markets

Government Policies

The Competitive Firm

Market Power

Agriculture and the Global Economy

Economics, Agriculture, and the Environment

Agribusiness Management

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Exam 5: Optimal Input Selection

If the price of flour (P2) decreased to $1/lb, draw a graph to show how the equilibrium will change, if expenditure is constant. Will the bakery purchase more or less flour? Will the bakery purchase more or less sugar? Explain why.

An isoquant shape is derived from:

Perfect substitutes in production have:

Draw an isoquant in the graph above, and show an equilibrium point.

Two isoquants can never:

Sugar (=X1, in oz) and flour (=X2, in lbs) are used to produce bread (loaves). The price of sugar is P1=$5/oz, and the price of flour is P2=$2/lb. Expenditures for this bakery are equal to $100. Graph the isocost line for this bakery.

Coke and Pepsi will purchase sucrose or fructose based on:

Nuts and bolts are:

If the price of the input on the horizontal axis (X1) increases, then

Most inputs in production processes can be:

A business firm will choose which outputs to produce based on:

The isocost line:

Perfect complements are:

Perfect substitutes:

An isoquant is:

MRTS is equal to:

Define and explain MRTS carefully.

In sub-Saharan Africa, the choice of labor over machines is due to:

Labor and agrochemicals are:

Equilibrium is:

Introduction to the Economics of Agriculture

The Economics of Production

The Costs of Production

Profit Maximization

Optimal Output Selection

Supply

Supply

Demand

Markets

Government Policies

The Competitive Firm

Market Power

Agriculture and the Global Economy

Economics, Agriculture, and the Environment

Agribusiness Management

Filters

If the price of flour (P₂) decreased to $1/lb, draw a graph to show how the equilibrium will change, if expenditure is constant. Will the bakery purchase more or less flour? Will the bakery purchase more or less sugar? Explain why.

Sugar (=X₁, in oz) and flour (=X₂, in lbs) are used to produce bread (loaves). The price of sugar is P₁=$5/oz, and the price of flour is P₂=$2/lb. Expenditures for this bakery are equal to $100. Graph the isocost line for this bakery.

If the price of the input on the horizontal axis (X₁) increases, then