1.Which of the following is NOT a decision that can be made at the margin?
whether to grow beans or corn on large farm
whether to hire 100 new workers or not
whether to leave early in the moring or late in the day
whether or not to go on vacation, I think this is the answer, correct?
2.Which of the following is a kind of decision that can be made at margin?
whether to hire new workers or not, I think this is correct answer??
whether to go on vacation or not
whether to build an addition on house
The schedule below shows the level of output that can be produced using different levels of input. A unit of input costs $80 and the fixed costs of running your business are $50.
Input Output
0 0
1 2
2 6
3 9
4 11
5 12
1. What is your AVC of producing 11 units of output? __________
2. What is your AFC of producing 12 units? __________
3. What is the marginal cost of the 12th unit? __________
4. What is the marginal cost of your 9th unit? __________
5. At what level of output is ATC at its minimum? __________
1. The answer is: whether or not to go on vacation. This is because going on vacation is a discrete decision that is not typically made at the margin. It does not involve incremental changes or adjustments, but rather a binary choice between going on vacation or not.
To determine this answer, we can look at each decision option and consider if it involves making choices at the margin:
- "Whether to grow beans or corn on a large farm": This decision can be made at the margin because it involves choosing between two options based on their incremental costs and benefits. For example, a farmer might consider the current price of beans and corn, the expected yield from each crop, and the cost of resources required to grow each crop in order to make a decision.
- "Whether to hire 100 new workers or not": This decision can also be made at the margin since it involves considering the incremental benefits and costs of hiring additional workers. The decision might depend on factors such as the anticipated increase in productivity, labor costs, and the potential impact on profits.
- "Whether to leave early in the morning or late in the day": This decision can be made at the margin because it involves weighing the benefits and costs of different departure times. Factors like traffic conditions, time efficiency, and personal preferences can all be considered to make an incremental decision.
By process of elimination, we can conclude that the decision of whether or not to go on vacation does not involve making choices at the margin as it is not based on incremental considerations.
2. The answer is: whether to hire new workers or not. This decision can be made at the margin because it involves considering the incremental benefits and costs of hiring additional workers. The decision might be influenced by factors such as the anticipated increase in productivity, labor costs, and the potential impact on profits.
To determine this answer, we can look at each decision option and consider if it involves making choices at the margin:
- "Whether to go on vacation or not": This decision is not made at the margin as it is a discrete choice with no incremental adjustments. It is a binary decision between going on vacation or not.
- "Whether to build an addition on the house": This decision can also be made at the margin since it involves considering the incremental benefits and costs of building an addition. Factors like the expected increase in living space, the cost of construction, and the potential impact on property value can be evaluated to make an incremental decision.
Therefore, the decision of whether to hire new workers or not is the one that can be made at the margin.