If the cost of water used to irrigate orange groves in California increases, the

Question

If the cost of water used to irrigate orange groves in California increases, the __________ curve of California oranges ___________________. This leads to _________________ in the equilibrium price for California oranges and ____________ in the equilibrium quantity sold. demand, shifts to the right, an increase, an increase supply, shifts to the left, an increase, a decrease supply, shifts to the right, a decrease, an increase demand, shifts to the left, an increase, a decrease supply, shifts to the left, a decrease, an increase Firm XYZ measured its MP of labor curve to be the following: MP = 4000 - 2L where L is the number of hours of labor hired per day. XYZ produces gadgets that are sold for $20 each and is able to hire workers for $10 per hour. How many hours of labor should XYZ hire each day to maximize its profits? (DO NOT USE SYMBOLS OTHER THAN A DECIMAL POINT OR NEGATIVE SIGN IN YOUR ANSWER. IF YOU USE A NEGATIVE SIGN, DO NOT LEAVE A SPACE BETWEEN IT AND THE NUMBER.) 10 points Save Use the terms "rising," "falling," or "staying the same" (but without the quotation marks) when filling in the following blanks. When the average total cost curve is "U" shaped, the average total cost curve is if the marginal cost curve is below it and if the marginal cost curve is above it. When average variable cost is minimized, marginal cost is and when average total cost is minimized, marginal cost is . Hernandez Corp. uses two variable inputs, X and Y, to produce its final product, canoes. Its engineering department has estimated the marginal product functions for inputs X and Y as follows: MPx = Y/X MPy = 4 X/Y Where X and Y denote, respectively, the quantity in hours of inputs X and Y used. At present Hernandez Corp. pays $40 per hour for input X and $10 per hour for input Y. It is using 200 hours of X and 100 hours of Y per day. a. Write a paragraph explaining how the Hernandez Corp. finds the least cost combination of inputs for producing a given rate of output. b. Using the data provided above, determine if the Hernandez Corp. is using a cost minimizing combination of inputs. Explain your answer/show your work. If your answer is no, how should the input combination be adjusted?

Explanation / Answer

supply, shifts to the left, an increase, a decrease

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