Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $58,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $62,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month. LO16.5 a. What is the marginal product of labor? The marginal product of capital? b. What is the ratio of the marginal product of labor to the
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- Consider the following production schedule: Output per hour Total Cost 0 $ 1 $ $ $ $ 4.00 7.00 8.00 12.50 17.20 $ 22.00 $ 29.00 In the above table, the firm's total fixed cost of production is 2 3 4 5 сл LO 6 $99.70 $4 $29 $3 $7arrow_forward3. Consider the production function: Q =4K05L05. If the firm used K = 9 capital and L - 49 labor, how much output, Q. would be produced in the given time period? O 84. O 60. O 21 O None of the other options. O 98.arrow_forwardAverage total cost tells us the O 1) cost of the last unit of output, if total cost does not include a fixed cost component. 2) variable cost of a firm that is producing at least one unit of output. 3) O 4) total cost of the first unit of output, if total cost is divided evenly over all th units produced. cost of a typical unit of output, if total cost is divided evenly over all the uni produced.arrow_forward
- Nonearrow_forwardSuppose that Dent Carr's long-run total cost of repairing s cars per week is c(s) = 4s² + 12 for s>0 and c(0)=0 with MC(s) = 8s. If the price he receives for repairing a car is $24, then in the long run, how many cars will he fix per week if he maximizes profits? O 3 04 06 O 12arrow_forwardacroeconómic Policy and Natural Resources (10)|| Sp Time left 1:23:57 estion When a par ar firm is fully utilizing its capital, its output is given by Y = 10 × LO5. The cost of labour is OMR1 per unit. To maximize profit, how many units of labour should this firm use? wer saved -ked out of Flag O a. 50 estion O b. 100 О с. 5 O d. 25 O e. 3.16 CLEAR MY CHOICE NEXT PAGE PREVIOUS PAGE CET 0001 A 人 hparrow_forward
- Plz don't provide image for answer Thank youarrow_forwardThe profit function (in dollars)for a company is given by P(x) = 120x – x², where x represents the units of items sold and x is between 0 and 100. Which %3D of the following statements is FALSE? O Profit first increases then decreases with an increase in the number of items sold. O When profit increases with an increase in x, it increases at a slower and slower rate. O Marginal profit decreases with an increase in the number of items sold. Average profit decreases with an increase in the number of items sold. O Average profit is equal to the marginal profit.arrow_forwardhelp please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingarrow_forward
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