Referring to Figure 6, Firm X uses labour (L) as the main inputs. Which of the following statements is false?Output permonthEALabor permonthFigure 6O a. At point E the average product of labor is negative.Ob.At point E the marginal product of labor is decreasing.O c. At point E the marginal product of labor is negative.O d. At point E the average product of labor is decreasing.

Referring to Figure 6, Firm X uses labour (L) as the main inputs. Which of the following statements is false? Output per month BC D E A Labor per month Figure 6 O a. At point E the average product of labor is negative. At point E the marginal product of labor is decreasing. O c. At point E the marginal product of labor is negative. O d. At point E the average product of labor is decreasing.

Referring to Figure 6, Firm X uses labour (L) as the main inputs. Which of the following statements is false? Output per month BC D E A Labor per month Figure 6 O a. At point E the average product of labor is negative. At point E the marginal product of labor is decreasing. O c. At point E the marginal product of labor is negative. O d. At point E the average product of labor is decreasing.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following statements is true? O At every output level the marginal product curve lies above the average product curve. The marginal product curve always has a positive slope. The marginal product = average product curves when average product is at its maximum. O The marginal and average product curves intersect at the maximum level of output.
Q28
Let's assume that a firm produces 60 products. Its total weekly cost (TC) at this output is $2,100. This includes TVC and TFC. We also know that the firm employs 3 part- time workers at a wage cost of $600 per worker per week. This is the firm's only variable cost (TVC). What is the firm's average fixed cost (AFC) at this output? O $2.50. O $2. O $5. O $100. O $10. Let's assume that a firm's total weekly costs are as follows: 1. Salaries of hired workers $5,000. 2. Supplies = $1,000. 3. Rent = $600, 4. The owners have invested a certain amount of their own money into the business. This could have earned them interest of $200 per week if they had chosen to put it into a bank instead of investing it into their business. 5. The value of the owner's time is estimated to be $800 per week. What are the firm's total economic costs? O $6.000 O $7.600. O $900. $7.500. O $6.700.
1. Assume a daily production function for a firm is Q= min(3L, 4K) a, If L = 100 and K = 100 what quantity is produced? Explain why. b. What would be the cost-minimizing labor and capital combination for this firm to produce Q = 1200? (show your work) Labor = Capital = At this level of production from part b (Q-1200), if the wage rate is: w- $30 and the rental rate of capital is: r= $100, what is the total cost of production? (show your calculations) C.
Suppose that the production function of a firm can be written as Q = 0.5K0.8L0.3. Which of the following is the equation for the average product of labor (APL)? O 0.3L-0.7 O K0.810.3 O 0.5K0.8L-0.7 O (0.7*0.5) K0.8L-0.7 O 0.5K0.810.3
Question 6 A production function defines the output that can be produced: O A. as technology changes over time. B. if the firm is technically efficient. O C. for the average firm. O D. in a given time period if no additional inputs are hired. O E. at the lowest cost, given the inputs available.
A firm's production function is Q = 100L.0 K-4. The firm's input prices are PL = $40 and PK = $30. The firm wishes to produce Q = 3,000 units of output and minimize the cost of production. How much labor (L) should the firm employ? O A. L=20.96. O B. L=31.45. O C. L=34.26. O D. L=38.45. O E. L=41.22. QUESTION 2 A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2 + 15*F -.3*F2. Total cost is TC = $2*L + $2.5*K + $1.75*F. The firm wishes to produce 400 units of output. Use Excel to find the cost minimizing amounts of L, K and F. How much F (Fuel) should the firm use? O A. F=7.90. O B. F=9.58. O C. F=10.75. O D. F=12.63. O E. F=14.88.
Suppose a firm's production function is Q=200L +5L2-0.08L³. Which of the following is the Average Production of Labor (APL)? Oa. 200+10L-0.24L² Ob. 10L-0.24L² Oc. 5L-0.08L² Od. 200+5L-0.08L²
A company has the following production function for its product, f(k, I) = k"/2/1/2. It faces input prices v = 5 for capital and w = 20 for labor. How much does the firm use of each input if it wants to produce 10 units of its product? O a. I= 4, k = 25 O b. / = 5, k = 20 O c. 1= 20, k = 5 O d. 1= 25, k = 4 Clear my choice Suppose the market demand for a good is Qº = 2000 – 8p and market supply is QS = 5p + 700. There are 10 %3D firms with exactly the same cost function. How much does each firm produce? O a. 100 O b. 120 O c. 140 O d. 200 Clear my choice
May I know the correct answer???
Which one of the following statement is true about slope of fixed cost: Select one: O a. Slope of fixed cost function changes but changes with the activity levels change O b. Slope of fixed cost function remains constant but changes with the activity levels change O c. Slope of fixed cost function changes but remains linear after the change O d. Slope of fixed cost function changes but remains constant after the change
The figure shows the total product curve for different levels of a variable input, labor. Output Total Product curve АВ с D E Quantity of Labor In the figure, at point C O average product equals marginal product O marginal product is at a maximum total product is increasing at an increasing rate average product is declining but positive