Chapter 3 HW

A supply curve (i) plots the quantities a seller is willing to sell at different prices (ii) shows the total cost to the seller (iii) shows the rising marginal costs (iv) shows rising fixed costs

(i) and (iii)

What choices are a shift in the supply curve 1. more cans of tuna hit the shelves at all major grocers after it was discovered that flash steaming tuna before using mechanical processes to extract meat allows for the removal of more tuna flesh 2. Amplitude decides to join the smartphone market 3. Americans put up their gold and silver jewelry ad a result of rising prices 4. a local fight club supplies less of its premium quality soap as a result of lower prices

1 and 2

Although most people do not manage a business, nearly everyone acts as a seller in some cortex of their daily lives. Classify each scenario and state which ones the individual is acting as a seller 1. dodger starts a dog walking business 2. Angie sells her used guitar on craigslist 3. John lists his house for sale 4. Vanessa is hired as a pilot for American Airlines 5. Jessica throws a birthday party for her sister 6. Melanie sends in her application to Arizona State University 7. Brendon asks his friends to help him move

1,2,3,4,5,

What choices are a movement along the supply curve? 1. more cans of tuna hit the shelves at all major grocers after it was discovered that flash steaming tuna before using mechanical processes to extract meat allows for the removal of more tuna flesh 2. Amplitude decides to join the smartphone market 3. Americans put up their gold and silver jewelry ad a result of rising prices 4. a local fight club supplies less of its premium quality soap as a result of lower prices

3 and 4

Although most people do not manage a business, nearly everyone acts as a seller in some cortex of their daily lives. Classify each scenario and state which ones the individual is Not acting as a seller 1. dodger starts a dog walking business 2. Angie sells her used guitar on craigslist 3. John lists his house for sale 4. Vanessa is hired as a pilot for American Airlines 5. Jessica throws a birthday party for her sister 6. Melanie sends in her application to Arizona State University 7. Brendon asks his friends to help him move

6 and 7

Ilsia is driving home from work. She needs to buy gas and notices an Exxon-Mobil station on one side of the street and a Shell station on the other side of the street. Although run by different companies, the two stations sell gas at the same price. The most likely reason that the price is the same is that (a) drivers need gas and are willing to pay whatever price a gas station charges (b) gas stations always make a profit, so they can charge any price they want (c) consumers view gasoline from different gas stations as perfect substitutes (d) government regulation requires both gas stations to charge the same price

C

You have recently been hired by Delta airlines to work in its strategy division. For each of the following illustrate how Delta's supply curve for airline flights will be affected by shifting the accompanying graphs (a) the price of jet fuel falls

A shift of supply to the right

During the 1990's, Dell computer company adopted a lean production process, a manufacturing process that reduces inefficiencies without reducing production. As a result, Dell became one of the largest PC manfuracting companies. Consider what impact the adoption if lean production techinquniques likely had on Dell's supply curve. Would there be a shift or a movement? what way would either go?

A shift of the curve to the right

Ilsia is driving home from work. She needs to buy gas and notices an Exxon-Mobil station on one side of the street and a Shell station on the other side of the street. Although run by different companies, the two stations sell gas at the same price. If one station increases its price (a ) it will make a higher profit (b) it will sell more gasoline (c) it will be fined by the government (d) it will lose customers to the cheaper station across the street

D

Boeing is a producer of wide-body aircraft - The manufacturing plant used to produce aircraft is a _____ cost for Boeing the cost of the manufacturing plant _____ be included in the opportunity cost of producing an additional aircraft

Fixed and Should not

Boeing is a producer of wide-body aircraft - The costs of the seats that are installed in each aircraft is a _______ cost for Boeing. The cost of the seats_______ be included in the opportunity cost of producing an additional aircraft.

Variable and should

In a graph the movement down a supply curve represents (a) a decrease in the quantity supplied (b) a decrease in supply (c) an increase in the quantity supplied (d) an increase in supply

a

You have recently been hired by Delta airlines to work in its strategy division. For each of the following illustrate how Delta's supply curve for airline flights will be affected by shifting the accompanying graphs (c) delta signs a new labor contract that increases the wages paid employees

a shift of the curve to the left

You have recently been hired by Delta airlines to work in its strategy division. For each of the following illustrate how Delta's supply curve for airline flights will be affected by shifting the accompanying graphs (b) Innovation of new software allows delta to more efficiently allocate it's aircraft

a shift of the curve to the right

Which of the following scenarios describes a business that is NOT following the law of supply? (a) Delilah is less willing to chauffeur people to the airport when the price of airport rides falls (b) the higher the price of custom made cakes in the market, the more Manfred is willing to bake and sell cakes (c) automobiles fall in price, and Maris's Automata Ltd. is now willing to sell more vehicles (d) When the price of car detailing rises, Ermo's Auto Garage hires more workers to do car detailing

c

Diminishing marginal product leads to (a) increased supply of the item in the market (b) lower opportunity costs of producing the item (c) decreases profitability for a seller (d) rising marginal costs for a seller

d

The Market supply is the (a) total cost of production of an item for the entire market (b) quantity supplied at each price by one seller (c) sum of all prices that sellers charge for a particular quantity (d) total quantity produced by all sellers in the market at each price

d

Which of the following lists only factors that would cause an increase in supply of an item? (a) a rise in the price if a substitute-in-production; an increase in the price of a compliment-in-production; an expectation that the price of an item will increase in the future (b) an increase in input prices; a decrease in the number of sellers in the market; an increase in the price of a substitute-in-production (c) a decrease in the number of seller in the market; a fall in the price of a compliment in production; a technological set back (d) a decrease in input prices; a technological innovation; a fall in the price of a substitute in production

d

An engine supplier decreases the price it charges Nissan by 50%, as a result , Nissans cost of production will ______ and Nissan should ______ its supply

decrease and increase

workers unionize and demand a 12% across the board raise, as a result the cost of production will____ and Nissan should ____ its supply

increase and decrease

Boeing is a producer of wide-body aircraft - The labor used to produce the aircraft is a _____ cost for Boeing. Labor costs ________ be included in the opportunity cost of producing an additional aircraft

variable and should