PQ 19.09 (and PQ 19.06) At a fish farm, which is operating in a perfectly competitive market, Kendall, the owner of this farm pays their workers $120 per day. There are 7 workers employed by Kendall. At their current level of production, the marginal product of the seventh worker is 8 kilograms of fish per day, and the marginal product of the eight worker would be 7 kilograms of fish per day. The market price of fish is $22 per kilogram. If Kendall wants to maximize profit they will Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a hire more workers. b. hire less workers. not change the amount of workers.

Consider the table above. Assume that the resource and output markets are both perfectly competitive. The equilibrium price of the resource is $12.50 and the equilibrium price of the product is $0.50. How many units of the resource will be hired by a profit maximizing firm? a. 1 unit b. 2 units c. 3 units d. 4 units e. Not enough information provided.

Question Onea.    The Mature Corporation produces yo-yos at its factory. Both its labor and capital markets are competitive. Wages are K12 per hour and yo-yo-making equipment (a computer controlled plastic extruding machine) rents for K4 per hour. The production function is q = 40K 0.25L 0.75, where q = boxes of yo-yos per week, K = hours of yo-yo equipment used, and L = hours of labor. i    Determine the cost minimizing capital-labor ratio at this firm.  ii    Determine the amount of labour used in production as a function of q. b.    Briefly explain factor that contribute to frictional unemployment in the economy.c.    Explain why a Marginal factor cost (MFC = W) is perfectly elastic in a perfect competitive industry? d.    Explain why internal markets for labor are every important for a firm?

In workout problem 20.2, the production function is given by fx) = 4x/2, If the price of the commodity produced is $100 per unit and the cost of the input is $45 per unit, how much profit will the firm make if it maximize profits? %3D O $447.44 $442.44 $1,781.78 $873.89 $888.89

R. Dry Foods Distributors specializes in the wholesale distribution of dry goods, such as rice and dry beans. The firm’s manager is concerned about an article he read in this morning’s Wall Street Journal indicating that the incomes of individuals in the lowest income bracket are expected to increase by 10 percent over the next year. While the manager is pleased to see this group of individuals doing well, he is concerned about the impact this will have on G.R. Dry Foods. Please explain what will happen to the price of the products G.R. Dry Foods sells? Why?

Saved The following table shows the production function for a bicycle manufacturer: Number of Workers Number of Bicycles Marginal Product Marginal Revenue 1 3 2 7 3 10 $ 4 12 2 13 $ 1 a) Suppose that the weekly wage is $700. What is the marginal labor cost of the second worker per week? $ b) Suppose that the price of a bicycle is $460. What is the marginal revenue for each level of output? Instructions: Fill in the values for the marginal revenue in the table above. c) How many workers does the bicycle manufacturer employ if the price per bicycle is $460 and the weekly wage is $700? workers d) If the price per bicycle drops to $300, what happens to the number of employed workers? The number of employed workers will (Click to select) Next> 5 of 8 < Prev T e e to search ASLS f12 pause break f10 f8 f6 f7 f5 f3 f4 2 & $ 4 ## 3 8 7 5 P U Y T R E A 2

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

A pizzeria, which operates in a perfectly competitive hospitality market, can produce pizzas if it has its premises and a pizza oven (which cost £10 per night), ingredients (£3 per pizza), and workers (each of whom earn £40 per night). The number of pizzas that can be produced per night, depending on the number of workers employed by the pizzeria, is given in the following table: Workers employed 1 2 3 4 Pizzas per night 20 36 48 56 60 HINT: In the following, you willI be asked to draw curves in diagrams based on the above table. In each diagram, please proceed as follows: First, place a dot in the diagram, each representing a column in the table. Second, label each dot with its coordinates. Third, connect dots with straight lines to obtain the required curve. d) Explain how the firm can use this cost function to determine its profit maximising quantity. (Ctrl) e) Determine the firm's profit maximising quantity if the market price is £6, showing how you applied the method that you…

Five fishermen live in a village and have no other employment or income earning possibilities besides fishing. They each own a boat that is suitable for fishing, but does not have any resale value. Fish are worth $5 per pound and the marginal cost of operating the boat is $500 per month. They all fish in a river next to the village, and they have determined that when there are more of them out there on the river fishing, they each catch less fish per month according to the following schedule: Boats Fish Caught per Boat (pounds) 200 190 175 155 130 If each fisherman acts in his own best interest, his average cost is the same as $ continue operating his boat as long as his . Thus, there will be 1 2 345 Each fisherman will is positive. If he catches 130 fish, his profit is boats in the river.

Marvin’s Milk Farm produces milk and sells it in a perfectly competitive market at $4 per bottle. The following table shows Marvin's weekly total and marginal product schedules, using labor and capital. Assume that labor and capital may be used independently; that is, one is not needed for the other factor to be productive. Therefore, the total amount of milk that Marvin's produces is obtained by adding together the amount of milk produced by labor and the amount of milk produced by capital. The table also shows total revenue and marginal revenue products (MRP) of labor and capital. Finally, assume that Marvin's Milk Farm is a factor price taker in the labor and capital markets. Labor costs $48 per week, and capital costs $72 per week.