Eco 112 Written Assignment #2

Eco 112 - Written Assignment 2 Answer all of the interest questions. call your naming Written Assignment 2, unless your mentor directs otherwise. This assignment covers textual matter chapters 7 through 12. 1. Answer all(prenominal) of the following questions on write out and manufacturer excess. a. What is manufacturer pointless, and how is it measured? Producer surplus is the amount a trafficker is paid minus the terms of production. Producer surplus is closely related to the fork up twine and is measured utilize the graphical representations. b. What is the relationship between the approach to sellers and the supply wrap? The relationship between the cost to sellers and the supply curve is the knowledge domain below the set and above the supply curve measures the manufacturing business surplus in a market. c. some other things equal, what happens to producer surplus when the price of a good rises? When the pric e of a good increases the producer surplus increases; additional producer surplus to existing producers and new producers enter the market and forget feel a surplus. 2. There are four consumers spontaneous to turn over the following for a hair arise: Consumer| Willing to Pay:| Ricki| $8.00| Oprah| $7.00| Jerry| $5.00| Montel| $2.

00| And there are four occupancyes with the following cost per haircut: Business| Haircut worth:| A Kutz| $3.00| B Kutz| $6.00| C Kutz| $4.00| D Kutz| $2.00| Each duty derriere produce no more than ace haircut. d. In the near efficient world, which companies should cut hair and w! hich customers should get a haircut? (Note: It powerfulness be less than 4.) Based on the abandoned info and that each business can produce exclusively one haircut, the following allocations would maximize the efficiency: 1 D Kutz should cut hair and Montel should get a haircut. This will straggle no surplus, but only one haircut and one business au naturel(p) as a jaybird hair. 2- In order to thrust more haircuts and businesses cutting hair, we would have Oprah go to B Kutz,...If you ask to get a full essay, order it on our website: OrderCustomPaper.com

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