Answered: If total product is maximum, hiring and…

Business

Economics

If total product is maximum, hiring and additional worker will

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: According to the above production table, diminishing marginal productivity sets in after the hiring…

A: Diminishing marginal productivity occurs when the marginal product of a product diminishes when…

Q: The firm’s demand schedule for labour is a negative function of the wage because, as the firm uses…

A: Law of demand applies to all the markets, be it product market or labor market. Demand schedule is…

Q: position about Salaries of uninformed personnel have to be the same with that of teachers and…

A: The pay and allowances are the basic cost that is incurred by any firm. But the salaries vary…

Q: The marginal product of labour (MPL) is higher at C than at A. The average labour product (ALP) is…

A: To establish which assertion is true, we must examine the curve:

Q: Shan's Dumpling House can produce 100 dumplings, using one worker, and 175 dumpling, using two…

A: Marginal product means the increase in the total output because of addition of one more labor.

Q: The price of factor A is GHC20 per unit and the price of factor B is GHC300.00 per unit.The marginal…

A: Answer: As per the given question price of factor A is GHC20 per unit and the price of factor B is…

Q: Isorevenue lines What does the graph above indicate? Choose Isocost lines 4 Labor An Isoquant The…

A: The Isoquant refers to the different combination of two inputs that produce the same level of…

Q: Explain efficiency wage theory Only typed solution

A: The objective of the question is to understand the concept of efficiency wage theory in economics.

Q: What does diminishing marginal product imply? The marginal cost of an extra worker is unchanged. The…

A: Marginal product is the change in total product with the additional unit of worker. Marginal cost…

Q: True or false The law of diminishing returns implies that the marginal product of labor (MPL) is…

A: MPL: The marginal product of labor is defined as the increase in output or output experienced by a…

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: The owner of a Florida car wash is maximizing profit. The price of a wash is $4.00, a car wash…

A: Profit is maximized when (Output price x MPL) = Wage rate MPL = Wage rate / Output price

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: 80 60 A BDE 60 80 120 Units of labor The firm is currently along isocost CD. If the price of capital…

A: Iso-cost line: The iso-cost line represents the various combinations of labor and capital that the…

Q: The marginal product of labor is A) output that does not meet quality specifications. B) total…

A: Marginal product refers to the addition in total product when one more unit of production is used.

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: The marginal product of labor is the change in A) total cost from employing one more worker. B)…

A: Marginal product is the additional output produced by employing an additional unit of input.

Q: What is a real life example of what is happening at the 'cross' of the 'X', or where the labor…

A: The market supply of labor is the number of workers of a particular type and skill level who are…

Q: The marginal product of labor is the additional:

A: Marginal product of labour is the change in output that results from employing an added unit of…

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: depending on the stages of production(increasing returns, diminishing returns, negative returns) can…

A: Solution: Law of variable proportion: It refers to the increase in quantity of only one input…

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: 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: 20. SG store sells its products at a price of $60,000 per unit. it is assumed that labor is the only…

A: Answer; Option (d) is correct $960,000

Q: Capital and labor are used in fixed proportions to produce an airline flight. It takes two workers…

A: Here we have to draw the isoquants of the air trip and changes in it.Isoquant: An isoquant in…

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. Calculate marginal physical product (MPP). Labor Output (Q) MPP 0 1 0 10 -- 2 22 3 30 4 36 56 38…

A: The marginal product of labor(MPL) refers to the additional output(Q) produced when 1 more unit of…

Q: Use the table to answer the following questions Output of labor Quantity of output 0 0 1 300…

A: The marginal product of labor for the nth worker is calculated as MPn=TPn-TPn-1 Where TP denotes…

Q: Y 12 SA initial MRTS AK 10 8 diminishing MRTS 6 4 2 IQ = 100 1 2 3 4 5 6 7 Labor (L) A) Assume a…

Q: If the demand for soccer tickets increases, why would an economist expect the salaries of soccer…

A: To comprehend the reason why a financial specialist could anticipate that the pay rates of soccer…

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: Explain efficiency wage theory Only typed solution

A: The objective of the question is to understand the concept of efficiency wage theory in economics.

Q: Fill in the blanks: 80 60 A BD E 60 80 120 Units of labor The firm is currently along isocost CE. If…

A: We are going to use properties of isocost line to answer this question.

Q: You manage Gofer Delivery Service. You rent a truck for $50 per day, and each delivery takes an hour…

A: The cost(C) function represents the correlation between the production of services or items and the…

Q: Pressed Juicery makes fresh-squeezed juices. The business produces 750 bottles per week with five…

A: Marginal product: Marginal product is the change in total output resulting from the addition of one…

Question

If total product is maximum, hiring and additional worker will

Microeconomics

Study of decisions made by households and business firms at an individual level. It includes several laws and theorems related to demand, supply, production, allocation of resources, and prices.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

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

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)
How does the marginal product curve behave when there are diminishing returns to a factor. Give reason also.
1. Suppose a short-run production function is described as Q40L 0.04L2 where L is the number of labors used each hour.
If the marginal product of labor is 50 per day, and if the market is $4.50, calculate the marginal revenue product.
Define marginal product of talent, with detail and example
One of these four answers could cause the demand curve for labor to shift to the right. Which one? Group of answer choices a decrease in the firm's product price an increase in demand for the firm's product a decrease in labor productivity an increase in the wage rate
The next 3 questions refer to the following: Labour Output 0 0 of 2 10 4 stion 26 6 46 8 65 10 72 12 80 14 86 Marginal Product when the number of workers increases from 2 to 4 workers is Marginal Product is maximized when the firm hires workers. Average Product is maximized when the firm hires workers. units.
Q(A) Use the following information to show the producers equilibrium under the isoquant/ isocost approach. a) Data below shows the combinations of two factor of production. Use the following data and plot the isoquant curve. combinations units of uk unit of l A 18 2 B 12 3 C 9 4 D 6 6 E 4 9 F 3 12 G 2 18 (b) Let the price of labor is Rs 1 per unit and the price of capital is Rs.4. Total expenditure of the firm is Rs.36 then find two bundles to plot isocost line.
A worker's labor supply depends on, among other things, his ability, his preference for the task, and the opportunity cost of his time. True False
Use a graph to illustrate and explain the individual supply of labour curve. In youranswer, describe the forces that determine the form (shape) of the individualsupply of labour curve.
Find 10 problems related to managerial cost and solve it.
Explain the difference between diminishing total returns and diminishing marginal returns to labor.