Musashi Cutter runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he rents from a local shop for $10 per day, and surfing instructors, whom he hires for $40 per day. Musashi has figured out that the marginal revenue product (MRP) of the last instructor hired is $400, and the MRP of the last board used is $300. Which of the following statements is correct? - Musashi will optimize his input combination if he employs more instructors and uses fewer surfboards - Musashi will optimize his input combination if he employs fewer instructors and use more surfboards - Musashi currently employs the optimal combination of surfboards and instructors
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- Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour. Refer to Table 1-1. Using marginal analysis, how many hours should Eva extend her bakery's hours of operations? 2 hours 3 hours 4 hours 5 hoursAaron has been spending five nights studying for his math tests and his current grade in the course is 90 percent. He decides to take a part-time job and study only four nights for his next test. As a result, after his next test, his grade falls to 70 percent. What is Aaron's marginal cost of working one night a week? Aaron's marginal cost of working one night a week is OA. 20 percentage points OB. greater than 70 percentage points and less than 90 percentage points OC. 70 percentage points OD. 90 percentage pointsYou run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal costs for each customer load level? If you are compensated $10 per ride, what customer load would you want?
- We R' Write is really worried about their production line for pens. The company is concerned that they are employing more workers on the production line than necessary. We R' Write has provided you with the production information for pens in the table below that corresponds to different numbers of workers on the production line. Describe where the law of diminishing marginal productivity begins for We R' Write. We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not? If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why? Number of Workers per Day Pens Produced per Day Average Product Marginal Product Price per Pen Total Value Product Average Value Product Marginal Value Product Price of Worker per Day 0 0 --- --- $3.50 $0.00 --- --- $560 15 1,000 66.67…Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below a. The wage is $15 per hour and Paducah's daily fixed cost for the lathe and building is $60. Instructions: Complete the table below if you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Enter your responses as whole numbers (bats per . 5 14 25 25 30 Number of employee-hours per day • 1 4 7 11 14 22 Tota (5 per day) ·O 500 100 - 110 -> 200 -> 250 - 500 350 - Total labor cost (5 per day) ·O 25 O NO se 101 - 245 - 240 O 330 Total cost 600 750 10 120 - 145 -> 225 - 2009 100 Profit -60- -25 O -100 140 350 25 - O Marginal cast per but What is the profit maximizing quantity of bats? 20 bats b.…Question 2 A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000.00. the cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company’s cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? Timothy quits his job which pays $84000 a year, to enrol in a 2-year graduate programme. His annual school expenses are $58000 for tuition, $9500 for books and 3600 for food. What is his opportunity cost of attending the graduate program? A motor vehicle assembly plant requires the use of both capital and labour. the telsa manufacturing plant is considering increasing the number of workers to increase production. Does diminishing returns hold in this scenario yes/no? explain. Explain how each of the following situations would affect…
- Let's explore how rising costs helped to kill off most printed newspapers after the Internet became available in the mid-1990s. Imagine that you are a newspaper publisher in the year 2004. You are in the middle of a one-year factory rental contract that requires you to pay $700,000 per month, and you have contractual salary obligations of $1,250,000 per month that you can't get out of. You also have a marginal printing cost of $0.35 per paper as well as a marginal delivery cost of $0.10 per paper. Instructions: Enter your answers rounded to two decimal places. a. If sales fall by 20 percent from 1,000,000 newspapers per month to 800,000 newspapers per month, what happens to the AFC per newspaper? AFC per newspaper (Click to select) : from $ b. What happens to the MC per newspaper? MC per newspaper (Click to select) ÷ c. What happens to the minimum amount that you must charge to break even? It (Click to select) : from $ to $of 20) - Google Chrome om/mod/quiz/attempt.php?attempt3D1472585&cmid%3D718317&page=4 ystem (Academe Labor Output (units per week) (workers per week) 20 on 2 50 70 4 85 95 100 The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the marginal cost of producing the 90th unit? Select one: O a. $50.00 Ob. $24.92 O C. $31.61 Od. $10.00 Next nage us page ype here to searchQuestion 11 Refer to Figure 1 in Question 11. The car-repair shop charges $150 per repair. What is the value of the marginal product of the third mechanic? (Enter your answer without a dollar sign)
- According to one estimate, the parts for a Segway Human Transporter-which has five gyroscopes, two tilt sensors, dual redundant motors, 10 microprocessors, and can travel up to 12.5 mph-cost at least $1,500 (Eric A. Taub, "Segway Transporter Slow to Catch On," San Francisco Chronicle, August 11, 2003: E4). Suppose that Segway's marginal cost is $1700, and the price of a Segway is $5500. What is the firm's price/marginal cost ratio? The price to marginal cost ratio is (round your answer to two decimal places) What is its Lerner Index? Its Lerner Index is (round your answer to two decimal places) What is the elasticity of demand it believes it faces (assuming that it is trying to maximize its short-run profit)? The price elasticity of demand is . (round your answer to two decimal places) étv 20 MacBook Air DI F4 F5 F3 & 23 2$ 7 8 9 - 3 4 5 { P W E R D F G J K L > C V M command option .. .- BImagine you run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal costs for each customer load level? If you are compensated $10 per ride, what customer load would you want? Please show all work.Gull Roza is a florist specializing in floral arrangements for weddings, graduations, and other events. Gull Roza has a fixed cost associated with space and equipment of $50 per day. Each worker is paid $80 per day. The daily production function for Gull Roza is shown in the accompanying table. Quantity of Labor (workers) Quantity of floral arrangements 0 0 1 110 2 200 3 270 4 300 5 320 6 320 Calculate the marginal product of each worker. Calculate the marginal cost, Average total cost, and average variable cost of each level of output.