A bottling company uses two inputs to produce bottles of the soft drink​ Sludge: bottling machines​ (K) and workers​ (L). The isoquants have the usual smooth shape. The machines cost​ $1,000 per day to run​ (r), and the workers earn​ $200 per day​ (w). At the current level of​ production, the marginal product of machines ​(​) is an additional bottles per​ day, and the marginal product of labor ​(​) is more bottles per day. Is this firm producing at minimum​ cost? If it is minimizing​ cost, explain why. If it is not minimizing​ cost, explain how the firm should change the ratio of inputs it uses to lower its cost. The bottling company

Easel manufacturing budgeted fixed overhead costs of $ 1.50 per unit at an anticipated production level of 1 comma 350 units. in july easel incurred actual fixed overhead costs of $ 4 comma 700 and actually produced 1 comma 300 units. what is easel's fixed overhead budget variance for july?

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Which of the following statements about brand names is true? brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. it is always rational to prefer brand names over generic substitutes. read the following example and determine whether it illustrates a common critique or defense of advertising. musashi sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. although he doesn't particularly need new clothes, the commercial prompts him to buy a brand x t-shirt.