Andry produces all-natural tote bags. She currently hires 20 workers who produce 240 bags a day. If she hires another worker, the worker's marginal product will be 33 tote bags a day. What would be the average product per day of 21 workers?

Andry produces all-natural tote bags. She currently hires 20 workers who produce 240 bags a day. If she hires another worker, the worker's marginal product will be 33 tote bags a day. What would be the average product per day of 21 workers?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Jerry's snowboards Total Labor Product (workers (boards Marginal Product of Labor ТР Average Product…

A: "Average product indicates the number of units produced per worker.""Marginal product of an input…

Q: Ken has an annual non-labour income of $5000. Suppose he has the total available time of 52×80=4160…

A: The labor force is made up of both employed and unemployed people. The labor force participation…

Q: The following chart shows the number of workers and hourly wage rate required to produce different…

A: Cost of production implies the total costs incurred by a business in the process of manufacturing a…

Q: A and B are based on the following data, which are for a pumpkin farmer who can hire pumpkin pickers…

A: Marginal cost is the increase in cost incurred from hiring an additional picker. Value of marginal…

Q: Suppose the marginal product of labor is MPL=10 and the cost of each worker is w=50. What is the…

A: In the labour market, the firms are the ones who demand labour and the workers are the ones who…

Q: Suppose that a firm's only variable input is labor. The firm increases the number of employees from…

A: It refers to the change in output(Q) that results from employing 1 additional unit of labor(L). It…

Q: The paper factory employs 470470 workers, producing 1,3001,300 tons of paper per month. Hiring 2020…

A: Given that the marginal product of each additional worker is 1010 tons of paper per month. A total…

Q: A firm has the following productivity schedule. If P = $15 and wage $30, how many workers the firm…

A: It can be defined as a tool that helps in showing the relation between the resource's input and the…

Q: 60 50 40 30 20 10F 2 3 4 5 Number of Workers Employed per Week Refer to Figure 7-1. If this figure…

A: Marginal product of Labor refers to additional output that results from hitting one more unit of…

Q: The average product of labor for three workers is 16 and the marginal product of labor for the…

A: Average product of labor refers to the output per labor. Marginal product of labor refers to the…

Q: K 300- 250- 200- 150- 100- 50- 0+ 0 100 200 300 400 Units of labor (hours) Assuming the price of the…

A: Calculate the Marginal Revenue Product (MRP)The MRP is calculated by multiplying the Marginal…

Q: Ramone's Drones Inc. makes local deliveries using small drones. Ramone is looking to hire an…

A: Given, Previous revenue = $8,750 per month After hiring new pilot revenue = $10,000 per month

Q: Assume that the firms in the United States set their price as a markup on their wage cost. Assume…

A: Labor is one of the most important factor of production in the production process. It is the labor…

Q: Does my son pulling weeds in the backyard at my command constitute Labor? Does your answer change…

A: Answer: Introduction: Labor: A labor is one who works in reward for money. The work may be either…

Q: The Zippy Paper Company has no control over either the price of paper or the wage it pays its…

A: Remember the formulas:Marginal product = change in output / change in labor inputMarginal revenue…

Q: Question 6

Q: Graph the isocost line associated with a wage of $10 per hour and a price of capital of $50 for…

A: The locus of all combinations of labor and capital used at a given cost is the isocost line. The…

Q: You own a landscaping company. You currently have 3 employees and are considering hiring a fourth.…

A: Addition to the total product gives the marginal product. This can be found by calculating the…

Q: What is meant by an inferior factor of production? How would the firm’s demand for labour be altered…

A: In economic representations, factors of production can be described as inputs that are utilized for…

Q: Suppose a certain firm is able to produce 160 units of output per day when 15 workers are hired. The…

A: The marginal product of an input is the additional output that comes about as a result of adding one…

Q: Calculate MPP and MRP in table below. The price of the product price is $6. Must show work. Labor Q…

A: The marginal physical product is the additional total product or output that can be produced by…

Q: Suppose a certain firm is able to produce 125 units of output per day when 19 workers are hired. The…

A: The objective of the question is to calculate the marginal product of the 20th worker. The marginal…

Q: Question 12 Refer to the data provided in Table 10.1 below to answer the following question(s).…

Q: What is the difference between the factor demand derived from cost minimization and that obtained…

A: Cost minimization simply means that businesses maximize their productivity or use the least…

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: ||

A: 8 adminstrative officers would be hired.

Q: You used the wrong elacticity of labor supply. It is .16 not 0.1

A: The labour supply elasticity is the percentage change in how much labour is supplied as a result of…

Q: What is meant by the term "division of labor"?

A: Labor economics is the study of the labour force as a component of the production process. The…

Q: What should the manager do? Group of answer choices Reduce the number of workers working in his…

A: The optimal labor demand condition refers to the level of employment where a firm maximizes its…

Q: Using the production function q = (z1ª + z2ª)1/a for a manufacturing firm, where z1 denotes labor,…

A: Given production function q=(Z1a+Z2a)1/a Z1=labor Z2=Capital a=constant parameter

Q: Tim works 51 hours per week, and his wage is $20 per hour. If his wage increases to $40 per hour,…

A: Initially, the wage rate is $20 per hour and Tim works 51 hours per week. Now the wage rate…

Q: Why is the firm's demand curve for labor the value of the marginal product of labor?

A: The demand for labor shows the number of workers available in the market for the equilibrium wage…

Q: True or false The marginal revenue product of labor is the extra revenue associated with the last…

A: Revenue The money received from routine business activities is referred to as revenue, sales, or…

Q: true or false The marginal revenue product of labor is the extra revenue associated with the last…

A: False A marginal revenue product (MRP) is defined as the market value having an one additional…

Q: A widget manufacturer has an infinitely substitutable production function of the form q= 2K+L a.…

A: a. The isoquant maps for q=20, q=40, and q=60 can be graphed as follows:Isoquant for q=20:q= 20 =…

Q: Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend…

A: The objective of the question is to find out the maximum total output possible if Eldin hires…

Q: A C E F G Number of Workers 1 3 4 5 Output (units) 40 90 126 150 165 174 The average product for the…

A: average product of a worker is determined as dividing the total product by the no. of workers

Question

□
Andry produces all-natural tote bags. She currently hires 20 workers who produce 240 bags a day. If she hires another worker, the
worker's marginal product will be 33 tote bags a day. What would be the average product per day of 21 workers?
Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.
a
b
C
Question 33
d
33 tote bags
1.6 tote bags
13 tote bags
273 tote bags

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Explain who should handle the labor relation in concerned country. Is it the headquarters or subsidiary? Explain why?
10. Recently, some college alumni started a moving service for students living on campus. They have three employees and are debating hiring a fourth. The hourly wage for an employee is $18 per hour. An average moving job takes four hours. The company currently does three moving jobs per week, but with one more employee, the company could manage five jobs per week. The company charges $80 for a moving job. What would be the new employee’s marginal product of labor? What is the value of that marginal product? Should the moving service hire a fourth worker?
The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationship between the number of workers Zippy hires and total output, with all other inputs being held constant. In the following table, for each quantity of labor input, fill in the marginal product (MP) and marginal revenue product (MRP) for Zippy. (Note: When the price doubles, this will also double the marginal revenue product.) Labor Input Total Output Marginal Product Marginal Revenue Product (Workers per day) (Boxes of paper per day) (Boxes of paper per day) Price = $10 Price = $20 (Dollars) (Dollars) 0 0 1 25 2 45 3 60 4 70 5 75 6 77 Assume that the selling price of paper is $10 per box. If the wage rate is $125.00 per day, Zippy will hire ______workers. Continue to assume that the selling…
For Question 53, and 54, use the table below. The table provides information about output (Q) the firm produces, revenues in a perfectly competition firm using factor of production labor FP (L) which represents workers. For example, a total of 2 workers produces 15 units per-hour. TR is total revenue. MR is marginal revenue, MP is marginal product and MRP is marginal revenue product. Given this information, how much is the MP for worker (L) for worker 2 and 3. P Q 0 15 O 5 and 5 O 35 and 25 07 and 5 O Band 7 TR 0 100 MR MP MRP FP (L) 0
The diagram below shows an agricultural production function. 900- 800- 700- 600- 500- 400- 300- 200- 100- 400 800 1200 1600 2000 2400 2800 Number of farmers Kilogrammes of grain produced (thousands)
Assume that the average product for six workers is fifteen. If the marginal product of the seventh worker is eighteen. A)marginal product is rising b)marginal product is falling c)average product is rising d)average product is falling
Use the table below. Marginal Total Total Marginal Product revenue Workers Produce Revesue per Product Price (5) product per (Output) hours ($) hour 2,50 25 25 2.50 63 62.50 36 11 2.50 90 27.50 45 2.50 113 22.50 50 2.50 125 12.50 55 is 2.50 138 12.50 How many workers would the firm hire if it were required to pay a wage of $25 per hour? O 2 3. Os
Edie chooses to work 90 hours per week when the wage rate is $16 per hour. If she is offered time-and-a-half ($24 per hour) for “overtime work” (i.e., hours in excess of 90 per week), will she choose to work longer hours? Support your results with a diagram.
If the marginal product of labor is 50 per day, and if the market is $4.50, calculate the marginal revenue product.
Calculate the marginal rate of technical substitution (MRTS)
If the marginal product of labor increases because of a technological advancement, it will likely cause a fall in the number of workers employed. an increase in the price of output produced by labor. a fall in the wage paid to labor. an increase in demand for labor. an increase in the supply of labor.
Explain the difference between diminishing total returns and diminishing marginal returns to labor.