Question

Answer Question One Please

Name: Homework 2-Elements of Microeconomics (Summer 2019) Question 1 [50 pts total] a) [25 pts] Suppose a firm is operating under perfect competition in the short run. State what is assumed to be fixed. State the Law of Diminishing Returns. [25 pts] Jim has a restaurant with a fully furnished kitchen and is looking forward to hiring some b) cooks. Assuming that the Law of Diminishing Returns kicks in after the second hired cook, draw graph that has the number of cooks on the horizontal axis and the produced meals on the vertical axis. Explain. Question 2 [50 pts total]. a. [13 pts] Using appropriate tools, find two points on a consumer/worker's supply curve of labor. Explain. . [12 pts] In general, which way would you expect a consumer/worker's labor supply curve to slope - upward or downward? Explain. c. [25 pts] Consider a consumer/worker, named Ishmael, who lives on a desert island. Ishmael likes two goods,C (for consumption) and I (leisure). He is able to produce C by giving up leisure, as depicted in the production-possibilities curve below: C

Answer 1

A.) hart fatar es un tme feriod l atlat Thus fined upply he Variable firaddand bsine as chaer nith n short thore both nun are factor thoduetan cale A and tcks tha short auumadl that the hart production eet compete han martety Thus nder in Nun un the wachinery tlant be kirad and and changiny variabe materiali and energy attera d Can input the labor weh raus laus diminiching it short the Mun states that to hoturns variable amaunt lond and tot al Outprit Lidll finst as more infut takital fixed addled are change tall in the nd Aise fhan The The naph defict hediet Curwe Tet al nunber fCeeks the Tatal at the Tal tue hedust are Piairg nreaundimirs hig and Total hedut oftn Nate bilt Niturns Ind caek Aeti in creales pate faint diminiching 2 Numbir 1 Cocks at a fter peirt tatal and reduct stant alling the Meal bradaed