Chapter 13 The Costs of Production - Thesis Paper Help

Rural wages may be above the marginal value product because of a traditional concept of a "proper" wage or because of social pressure on the more prosperous farmers in a community to share their wealth with their less fortunate neighbors. In parts of Java, for example, social custom prevents even quite small farmers from harvesting their own rice. Instead, they permit landless laborers to do the work, even though the farmer himself may well have the time to do it. This is explicitly seen by the community as a means of providing at least something for the poorest agricultural laborers. Unfortunately, increasing economic pressures on small farmers and continued population growth are leading to a break-down of this system.

This is due to a failure to incorporate all production costs in the relevant models.

You can pay via credit card online or with prior approval from your school, the costs can be charged to school directly. If you wish to have the school pay for it you need to ask them for a BU (Business Unit) and PG (project Grant) Number and the name and contact details of the accounts contact as we must have the costs approved by the school before we can begin production.


saving 20 percent of the former production costs of their aircraft.

The standard costs for the major equipment types for two plants with different daily production capacities are as shown in Table 5-15.

For the domestic equivalent of an imported item, the market price usually will closely approximate the real resource use that went into producing it. But if there is a shortage and the price is bid up, in the absence of additional imports the market price will rise above the cost of production. In this case, the opportunity cost of the item will not be determined by the resources used to produce it but by its marginal value product in its best alternative use. If the price is higher than is justified by the resources used to produce the item, it may well be because to someone that high price for the domestic engine is worth it-for this buyer's purposes, the marginal value product of the scarce engine at least equals the market price. If we wish to bid that engine away for use in our project, we are denying its use to the other potential buyer. If we use the engine in our project, the economy must forgo the productive contribution of the engine in the alternative use the other potential buyer had in mind-our standard concept of opportunity cost. Again, in this instance the opportunity cost is most likely well estimated by the market price; if it were not, other buyers would not have bid the price up so high for the limited number of engines available.


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Which of the following is an implicit cost of owning a business

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