Consider the production process represented by the total product curve (TP'), theaverage product of labor curve (AP'), and the marginal product of labor curve (MP')illustrated in the figure.20-If each worker produces an extra unit of output, how do total product, the average16-TP1product of labor, and the marginal product of labor vary with labor? Plot these curves inthe graph.12-1.) Using the multipoint curve drawing tool, graph the firm's new total product curve forone through four workers. Label this curve TP2:2.) Using the multipoint curve drawing tool, graph the firm's new average product curve8-for labor for one through four workers, Label this curve 'AP2:MP14-3.) Using the multipoint curve drawing tool, graph the firm's new marginal product curvefor labor for one through four workers. Label this curve 'MP.AP1Carefully follow the instructions above, and only draw the required objects.0-L, LaborAfter plotting the final point of your multipoint curve, press the Esc key on yourkeyboard to end the line.Q, Output

Holding all other input constant, the final out and one variable input shows a functional relation…

Answered: Consider the production process…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Suppose that the production function is Q=L075K©25, a) What is the average product of labor holding capital K fixed. b) What is marginal product of labor? c) What is marginal product of capital? d) What is MRTS?
1
The table provides information about the relationships between labor and various product measures The amount of labor that maximizes the marginal product of labor is Total product Marginal Average Labor (workers) (units) product product O. 3. 2. 45 3. 14 4. 19 Select one a. 2 units of labor b. 4 units of labor C3 units of labor. s units of labor.
Question 24 Consider the following production function when K is fixed. (This is a description of the figure: it shows a two-axis graph; in the horizontal axis we measure labor and in the vertical axis we measure output, in this case articles as in the production function of a newspaper; the graph of the production function, for the given level of capital K fixed, is composed of two line segments; the first goes from the origin to the point (10,30); the second, starting from 10 on, is a horizontal line; it is also shown that the production for five units of labor is 15). Can we say that the production function satisfies the law of decreasing marginal returns of labor?True False
5. The following diagram displays isoquants for different combinations of labor and capital. To ensure that the production function is depicted correctly, provide the values for Q₁, Q2 and 23 on the graph so that the production displays (a) increasing returns to scale, (b) decreasing returns to scale, (c) constant returns to scale. Capital (K)| 1,000 100 10 0 10 100 Q₁ = 1,000 Q₂ Q35 Labor (L)
For each of the following terms, provide a definition, a description of how this line looks on a graph, and any significant relationships between the term in question and other terms on this list. (If A is related to B, you only need to discuss the relationship once!) Average Product of Labor Marginal Product of Labor Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost
Ht.23.
Complete the following table by calculating marginal product and average product from the data given: Explain why marginal product eventually declines and ultimately becomes negative. What bearing does the law of diminishing returns have on marginal costs? Be specific.
Given the number of labor and the total product in the following table, 1- find the average product (APL) and marginal product (MPL) of labor. 2- Draw Total product (TP), average product (APL) and marginal product (MPL) of labor curves Labor (L) Product Average Product of labor Marginal Product of labor Total (ТР) (APL) (APL) 1 10 2 24 3 39 4 52 61 66 7 66 64 9. 54 40 10
Let S represent the amount of steel produced (in tons). Steel production is related to the amount of labor used () and the amount of capital used () by the following function: S- 20 L0 C0.7 In this formula L represents the units of labor input and Cthe units of capital input. Each unit of labor costs $50, and each unit of capital costs $100. (a) Formulate an optimization problem that will determine how much labor and capital are needed in order to produce 50,000 tons of steel at minimum cost. If your answer is zere, enter "p" Min 40 120 s.t. 20 S0000 (b) Solve the optimization problem you formulated in part a. Hint: When using Excel Solver, start with an initial >oand C0 Do not round intermediate calculations. Round your answers to the nearest whole number 2991 2318 Cost S 397448 ide Feedback
Given the number of labor and the total product in the following table, 1- find the average product (APL) and marginal product (MPL) of labor. 2- Draw Total product (TP), average product (AP) and marginal product (MP) of labor curves
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