10. The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000.
Q: s not maxim
A: Marginal Revenue is the amount of additional revenue being generated when additional Labor is being…
Q: In the short run, the hot dog seller Doug's Dogs has a single variable input, labor (1) W = 50 The…
A:
Q: The marginal product of a machine is 10 units of output per hour. The marginal product of labor is 6…
A: When a firm uses only capital and labor in production then the isoquant of a firm shows all the…
Q: The following table gives output levels for different levels of workers at Ken & Larry's Ice Cream.…
A: The Marginal Product (MP) of labor is the additional output that is produced when one more unit of…
Q: Review the Ledger-Enquirer news article located in Module 8 entitled: "Chick-fil-A begins…
A: Fixed costs: These are costs that do not change with the number of customers served. Examples of…
Q: Use the following table to answer the questions below. Number of chefs Number of pizzas produced…
A: Marginal Product of Labor (MPL): - it is the change in total production due to the employment of an…
Q: 1. Explain the relationship between the shape of the marginal cost curve and the marginal produ of…
A: The relationship among the shape of the marginal price (MC) curve and the marginal product of hard…
Q: 5- A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and…
A: The data presented In the question above is as follows:- Per hour money paid to servers = $5 Rent…
Q: QUESTION 23 A wheat farmer has a production function of q = KL = K0.5L0.5 with marginal products MPL…
A: Answer: Given, Production function: q=KL=K0.5L0.5 Marginal products:MPL=0.5KLMPK=0.5LK Since the q…
Q: The graph below shows a firm's isoquant for output q=30. Initially the firm produces at point A,…
A: An isocost line is a line that represents the various combination of factor inputs (here, machines…
Q: In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The…
A: Total labor cost is the total cost of hiring laborers. Total labor cost is calculated as units of…
Q: Using the information from the table below, what is the marginal cost of increasing output from 32…
A: The Marginal cost refers to the change in the total cost when one additional unit of output is…
Q: Define different average cost functions in the short run production. What are the shapes of the…
A: Short run production is a production cycle when atleast one of the factors of production is fixed.…
Q: l in the column for marginal cost in the previous table. (Hint: MC = 4) l in the column for average…
A: In economics, the marginal price is the alternate withinside the overall price that arises whilst…
Q: At what output does the firm reach minimum average variable cost? Multiple Choice 100 600 80
A: The graph shows the marginal and average product curves for labor, the firm's only variable input.…
Q: L Q TVC TC AVC AFC ATC MC 4 20 5 26 6 30…
A: Total cost is the sum of fixed and variable costs. Average cost is the per unit cost of output.…
Q: The following graph shows the marginal and average product curves for labor, the firm's only…
A: Marginal cost is the additional cost incurred by a producer for producing one more unit of an…
Q: Given that wage is $10. The last worker hired by Cal's Corn Farm added 20 ears of corn. The price of…
A: Wage rate = $10Last worker marginal product = 20 ears \4 ears corn price = $1Hi there , as per our…
Q: Suppose a firm is producing 2,475 units of output by hiring 50 workers (W = $20 per hour) and 25…
A: The firm will maximise profit or minimise the cost at a point where price ratio of two inputs used…
Q: 40 35 Output 30 25 20 15 10 5 1 2 3 4 5 6 Labor The diagram above shows the production function for…
A: Here, the production function bis a firm is represented graphically using which one can compute…
Q: 13. You run a fried chicken restaurant in Kentucky and can hire labor at a wage of $2/hr in a…
A: Here, it is given that wage rate is $2/hr, which is the marginal cost and selling price is…
Q: You are given the following table by one of your analysts. Provide the profit maximizing point and…
A: Marginal revenue is the addition to the total revenue from the sale of an additional unit of output.…
Q: True or false and explain Suppose a firm’s marginal product of labour is MPL = 10/L, where L is…
A: In the labor market of the economy, the equilibrium wage rate and the equilibrium quantity of labor…
Q: Directions: For each of the following problems you should use EXCEL to calculate the various…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: A firm minimizes its costs by using inputs such that the marginal product of labor is 10 and the…
A: Marginal product describes the additional output or productivity gained from increasing the input of…
Q: Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the…
A: Marginal cost :- The marginal cost of production is the change in total production cost that comes…
Q: Assume that labor and capital are the only inputs used by a firm. Capital is fixed at 5 units, which…
A: Total cost consists of fixed cost and variable cost. Fixed cost is independent of output and…
Q: Which of the following determines the firm's demand curve for labor? a.The size of the labor force…
A: At the point when the marginal revenue result of work is diagramed, it addresses the association's…
Q: product schedule for plastic bags. Each unit of labor costs $25 and the total cost of capital is…
A: Total Cost is the cost which incurred by producer for producing goods and services , and this total…
Q: Output Marginal Labor (Q) Product 15 1 2 50 15 3 4 70 5 60 In the table above, when the firm…
A:
Q: Continuing to refer to Table 7.9 and Figure 7.7, compute the average total cost, average variable…
A: * SOLUTION :- Given that ,
Q: The price of labour for worker is $27 and the price of labour for robot is $15 With this new price…
A: Cost minimisation is the concept in economics, here businesses tend to minimise their costs by using…
Q: Question 39 Consider the table below. The addition of worker number when the firm first experiences…
A: Change in the total product when one additional unit of input is used, is called the marginal…
Q: Question 2 A snowboard company currently hires 10 skilled employees who are paid a weekly wage…
A: Marginal cost refers to the additional cost that incurred due to increasing one more unit of output.…
Q: Show that a firm's marginal product of labor MP(E) intersects the maximum point of its average…
A:
Q: 54
A: The marginal cost is the cost of producing an additional one unit of output. Marginal products of…
Q: The marginal product of an input is defined to be: A. the additional output that can be produced…
A: Answer: C The additional output that can be produced by increasing the input by one unit, holding…
Q: What happens to product function if there ia firm removes labour
A: We can summarise our previous ideas in terms of a production function, which is a mathematical…
Q: Output Marginal Labor (Q) Product 15 1 50 15 5 4 70 5 60 In the table above, when the firm produces…
A: The labor market of the economy determines the equilibrium wage rate and the quantity of labor…
Q: 200 160 Average and Marginal Product 80 40 MP AP 0 10 20 30 40 50 Labor In the figure above, the…
A: The cost per output unit is known as the average cost. The average cost may be calculated by…
Q: The average product of labor will reach a maximum where the marginal product of labor is maximized…
A: By labor, economists refer to the human effort which goes into producing goods and services in an…
Q: Suppose you are given the following output and (incomplete, cost tapre (assume labor is the only…
A: Marginal cost (MC) is a fundamental concept in economics that represents the additional cost…
Q: Consider a small photography studio with 8 workers and 5 The total cost of labor and capital is…
A:
Q: What is the firm's average fixed cost of producing 1,500 gadgets?
A: Fixed cost refers to the cost incurred by a firm irrespective of the level of output produced by a…
Q: if a firm hire workers at $3 week , labour is 1 and output is 6 what is the fixed cost, variable…
A: Wages (W) is given as $3.Labor (L) is 1.Output (Q) is 6 units.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Question 2 Full explain this question and text typing work only thanksGraph the isoquant below and explain Labor (x) 50 38 28 20 14 10 8 7 Capital (y) 3 6 9 12 15 18 21 24Suppose you are considering hiring another worker. Also assume that you are at a firm that is operating at a point where the marginal product of labor is 5 and the price of each unit of labor is $2, and the marginal product of capital is 20 and the price of each unit of capital is $10. Should you hire another worker? If you hire another worker, what will happen to the marginal product of labor and why?
- Jill Pizza restaurant labor is 650 per worker, cost of oven is 800. The workers needed increases as the number of pizzas made increases. Using the information below: 1. Fill in the remaining columns given the calculations to calculate costs: variable (VC), Marginal (MC), Average Var.(AVC) Average Fixed (AFC) 2. Graph the MC, ATC, AVC, AFC curves (start from Quantity of 200 or your graphs look bad) 3. What is happening to your MC curve over time? Total Costs (TC), ATC (Average Total Costs),AFC (Average Fixed Costs), AVC(Average Variable Costs), MC (Marginal Costs) Workers Ovens 0 1 2 3 4 5 6 2 2 2 2 2 2 2 Q of pizzs 0 200 450 550 600 625 640 Fixed Cost of Ovens 800 800 800 800 800 800 800 Varriable Cost of Workers 0 650 Total Costs 0 ATC 0 AFC 0 AVC MC 0 0Barb's Bakery employs three workers who produce 6 cakes per hour. After Barb hires a fourth worker, production increases to 12 cake per hour. Which of the following statements is TRUE? a. b. C. d. Because the marginal product of the fourth worker is greater than the average product of three workers, the average product must rise. Because the marginal product of the fourth worker is less than the average product of three workers, the average product must fall Because the marginal product of the fourth worker is less than the average product of three workers, the average product must rise. Because the marginal product of the fourth worker is greater than the average product of three workers, the average product must fall.GM cuts jobs at its Australian manufacturing unit GM will cut 500 jobs, or about 12% of its workforce, at its Australian plant because of a sharp fall in demand for its locally-made "Cruze" small car. Source: The Wall Street Journal, April 8, 2013 As GM cuts its workforce, how will the marginal product and average product of a worker change in the short run? Suppose that before the cuts the marginal product of GM workers is below their average product. As the number of workers decreases, the marginal product of a GM worker and the average product of a GM worker in the short run. increases; decreases does not change; does not change decreases; decreases increases; increases decreases; increases
- Assuming the firm is minimizing its cost and the price of labour is $10 per unit and the price of capital is $20 per unit. the marginal product of labour is 50, what must the marginal product of capital be?. In the short run, labor is a hat-making firm’s only variable input. Wage rate is $5.00/hour. The firm currently employs a certain amount of labor H (hours), such that the marginal product of labor is 10 hats per worker-hour, and average product is 15 hats per worker-hour. MPL(H) = 10; APL(H) = 15. (Note: marginal and average products of labor for this firm are not constant. 10 and 15 are their values at a particular point, H, not everywhere.) What is the marginal cost of a hat for that firm?A small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 100 cookies per day, the cost of the average worker is $32 per day, and the price of a cookie is $1.00. Is the firm maximizing profit? The firm A. is not maximizing profit because the marginal revenue product of labor is greater than the wage. B. is not maximizing profit because the marginal revenue product of labor is less than the wage. C. is maximizing profit because the marginal product of labor is greater than the wage. D. is not maximizing profit because the price of the output is not equal to the wage. E. is not maximizing profit because the marginal product of labor is greater than the wage.
- Macmillan Learning Consider the table, which reports production information for a firm that uses a fixed amount of capital and varying amounts of labor. Use this information to answer the questions. Do not round answers. What is the marginal product of the third worker? Third worker's marginal product: units What is the average product of the second worker? Round your answer to the nearest whole number. Second worker's average product: units What are diminishing marginal returns, and with which worker do they set in for this firm? Diminishing marginal returns occur in the short run when variable inputs are added to a fixed input, and marginal product declines. In this case, diminishing returns set in with the fourth worker. O Diminishing marginal returns occur in the short run when variable inputs are added to a fixed input, and product declines. In this case diminishing Workers 1 2 3 4 Output (total product) 23 27 33 37a) Fill in the empty cells in the table. You have been also given following additional info- Price = $ 10 Wage = $ 1500 Labor (L) Output (q) Marginal Product of Labor Value of the marginal product of labor: Wage Marginal profit 0 0 1 400 2 720 3 960 4 1020 b) When the company should stop hiring Workers. ExplainConsider a small business that makes pastries. The business has rented a building to be used as its factory and shop floor. The rent of the building is $2,000 per week. The rest of the firm's weekly costs are as follows: ●Income lost from alternative employment - $2,000 ●Explicit variable costs - $1,500 ●Implicit variable costs - $ 500 i. If the firm sells 1,000 pastries per week, at $6 per pastry, calculate the firm's weekly ●Accounting profit, and ●Economic profit ii. Based on your answer to part b. i. above, should the firm continue to operate? Why or why not? iii. Assume that the firm continues at the current output level of 1,000 pastries per week while the prices start to fall. The firm should consider 'shut-down' if the price falls below what dollar value? Explain using relevant calculations and concepts