Suppose the following table gives the quantity of labor, offered wage, and marginal revenue product of labor for Company X. Labor (hours) Wage ($/hour) MRP 16 12 17 18 170 18 24 154 19 30 138 20 36 122 d. What can the firm do to increase profits?
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- What is the marginal cost of labor?Suppose the following table gives the quantity of labor, offered wage, and marginal revenue product of labor for Company X. Labor (hours) Wage ($/hour) MRP 16 12 - 17 18 170 18 24 154 19 30 138 20 36 122 What can the firm do to increase profits?part A and B are based on the following data, which are for a pumpkin farmer who can hire pumpkin pickers at $8.50 per day. Number of pickers 1234567890 (e) Briefly explain your answer. (b) (c) Value of pumpkin output $30 48 62 72 80 84 87 A) The profit-maximizing pumpkin farmer should hire only (a) One pumpkin picker because his contribution to output is greatest. (b) Three pumpkin pickers because the fourth costs more than he earns. (c) Four pumpkin pickers because the fifth costs more than he earns. (d) Nine pumpkin pickers because the value of the marginal product of the tenth picker is zero. Ten pumpkin pickers because costs will equal revenue. 89 90 91 The Great Pumpkin, in an attempt to make the pumpkin pickers better off, legislates that pumpkin pickers must be paid a wage no less than $14.50 per day. If our profit-maximizing farmer complies, which of the following will be correct? (a) The quantity of pumpkin output will fall. The value of the average product of labor will…
- Assume the Jacksonville Jaguars, a football team, are in the process of hiring players. The following hypothetical table of data gives the necessary information to the manager to hire quarterbacks. Salary (Thousands of dollars) Number of Quarterbacks 0 о 100 1 200 2 300 3 400 4 500 5 Total Cost of Quarterbacks (Thousands of dollars) Marginal Factor Cost (MFC) Marginal Revenue Product (MRP) (Thousands of dollars) (Thousands of dollars) 100 700 100 300 650 400 500 600 900 700 550 1,600 900 500 2,500 On the following graph, use orange points (square symbol) to plot the labor supply curve for quarterbacks, starting with point (1, 100). Next, use green points (triangle symbol) to plot the marginal factor cost curve on the midpoints of the horizontal axis, starting with point (0.5, 100). Note: Plot points from left to right in the order you would like them to appear. Points will connect automatically. SALARY (Thousands of dollars) 1000 900 800 700 Labor Supply 600 MFC MRP 500 400 300 200 100…a) Fill in the empty cells in the table. You have been also given following additional info- Price = $ 10 Wage = $ 1500 Labor (L) Output (q) Marginal Product of Labor Value of the marginal product of labor: Wage Marginal profit 0 0 1 400 2 720 3 960 4 1020 b) When the company should stop hiring Workers. ExplainConsider a small business that makes pastries. The business has rented a building to be used as its factory and shop floor. The rent of the building is $2,000 per week. The rest of the firm's weekly costs are as follows: ●Income lost from alternative employment - $2,000 ●Explicit variable costs - $1,500 ●Implicit variable costs - $ 500 i. If the firm sells 1,000 pastries per week, at $6 per pastry, calculate the firm's weekly ●Accounting profit, and ●Economic profit ii. Based on your answer to part b. i. above, should the firm continue to operate? Why or why not? iii. Assume that the firm continues at the current output level of 1,000 pastries per week while the prices start to fall. The firm should consider 'shut-down' if the price falls below what dollar value? Explain using relevant calculations and concepts
- The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. The following table shows the total and marginal products of labor for a trawler. Crew Size (L) (No. of Workers) Amount of Fish Caught per Week ( Q) (Hundreds of Lbs) Marginal Product ( MPL) (Hundreds of Lbs) 5 15 10 30 15 55 25 80 25 95 15 105 10 110 5 10 110 11 105 -5 12 95 -10 Suppose the owner of the trawler can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $1,125 per week. Assuming that the owner of the trawler is interested in maximizing profits, what is the optimal crew size? workers |2 3 4 5 67 8 9을A VWQ6 Q9 B Unanswered The table below shows the total product from different levels of labor. Suppose the hourly wage rate for labor is $30 per hour. What is the Total Variable Cost of producing 50 units? $30 $1,500 C $60 D $2 Units of Labor (hours) 0 1 2 3 4 Total Product X 0 20 50 80 100 pure water, perfect teFill in the following table, assuming that the firm pays a rent of $1000 and wages equal to $600 per worker. Labor Marginal Variable Total Cost Marginal Output (Q) Average (L) Product of Cost (VC) (TC) Variable Cost Labour (MPL) Cost (AVC) (MC) 2 12 3 90 4 600 HNM
- On the 15th August, 2022, the Public Utility Regulatory Commission (PURC) announced 27.15% hike in electricity tariff. Explain how this will impact on firms.Using the information from the table below, what is the marginal cost of increasing output from 32 to 40 knit scarves per week if the weekly wage is $200? [Table description: The first column contains number of workers. The second column shows output. The third and fourth column contain average product and marginal product, respectively.] Number Average Marginal Product of workers Output Product 0 0 2 3 A 5 10 10 10 10 12 22 22 11 10 32 10.67 40 10 46 9.2 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer a $50 b $25 525 c $200 d $4A television production firm is able to produce TVs according to the short-run production table below. With the hiring of which worker would the diminishing marginal product begin? Total Output Number of of Televisions Workers per day 0 0 30 2 70 3 125 185 225 250 260 255 240 01 4 5 6789