You are an employer seeking to fill a vacant position on an assembly line. Are you more concerned with the average product of labor or the marginal product of labor for the last person hired?
Q: If a person starts their own business, one implicit cost is the loss of a steady salary from leaving…
A: This statement is True Implicit cost is the opportunity cost of the foregone alternative which is…
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: The maximum possible weekly average product of labor in the plant is
A: Formula for average product/output: Average product = Total product / Number of worker
Q: What is the slope of an iso-cost line equal to and why? Provide mathematical explanation
A: Iso-cost line are that cocas of bundle of factors of production whereproduction Total cost is…
Q: If we assume that labor is the only variable input, the slope of the short run total product curve
A: Marginal Product of labour is defined as the increase in total production of the company when one…
Q: Prunella raises peaches where L is the number of units of labor she uses and T is the number of…
A: Given Production function f(L,T) = LT
Q: The marginal product of labor for the third hour of labor is ...????. (Enter your response as an…
A: 1) Marginal product of labor for 3rd unit is MPL= TP3-TP2 = 120-90 = 30 2)Value of…
Q: Draw a production function that exhibits diminishing marginal product of labour. Draw the associated…
A:
Q: True or false 1-If the marginal product of labor is increasing, the marginal cost of production…
A: 1)Due to increase in marginal product,efficiency would increase,therefore cost would decrease.…
Q: Given the following production function, complete the missing values. Labour Quantity of chicken per…
A: Total Production refers that total production by using the given factor and the average production…
Q: The local ice cream shop is trying to figure out how many workers to hire, and part of the decision…
A: Answer to the question is as follows :
Q: In short-run production where labor is a variable input, the relationship between marginal product…
A: We are given, Economy is in short run. Labor is the variable input. Marginal cost of production =…
Q: What shapes would you generally expect a total product curve and a marginal product curve to have?
A: Answer to the question is as follows:
Q: If the marginal revenue product of a gallon of oil used as input by a firm is $2.20 and the price of…
A: Marginal revenue product (MRP) is the marginal revenue created by using one additional unit of…
Q: What is the total cost when the marginal product of labor is 15? What is the total variable cost…
A: The marginal product of labour can be calculated by dividing change in output by change in labor.…
Q: We often work with production technologies that give rise to initially increasing marginal product…
A: Production technology:True, because the slope of the production frontier is equal to the marginal…
Q: Define production function
A: Production is the process of merging numerous material and immaterial inputs (plans, information) to…
Q: Explain why an increase in the price of an input must typically cause an increase in the long-run…
A: As we know in long run , firms can increase both factors simultaneously and due to this firm…
Q: Why does the marginal product of labor start to decrease after a certain number of workers are…
A: Marginal Product of labour basically means the change in total output, due to one unit change in…
Q: A manager hires labor and rents capital equipment in a very competitive market. Currently the wage…
A: Given wage rate (w) = $12Capital rent (r) = $8Marginal product of labor (MPL) = 60 unitsMarginal…
Q: When the marginal product of labor is increasing marginal cost is decreasing constant increasing at…
A: The marginal cost is the cost of producing an additional one unit of output. Marginal products of…
Q: A farm is currently able to produce 10000 bushels of peanuts per season on 10 acres. Assume it adds…
A: The marginal product of an input refers to the extra output that is produced when one more unit of a…
Q: When the marginal product of labor equals the average product of labor, then a. the marginal product…
A: Marginal product is the additional output produced by employing an additional unit of input.
Q: When the marginal product of adding a worker is a greater loss than the loss of the marginal product…
A: When the marginal product of adding a worker is a greater loss than the loss of the marginal product…
Q: “My friend, Mike, is a CPA and owns his own tax business. During tax season, he hires additional…
A: Law of diminishing marginal returns states that as a person goes on increasing the amount of an…
Q: Refer to the figure at right. At which point on the total product curve is the average product of…
A: Total product refers to total output produced by the firm. Average product refers to total product…
Q: Does additional input of labor entail a steady increase in the output of a firm? Why or Why not?
A: "Factors of production are resources that are used to produce goods or services." There are various…
Q: The average product of labor will reach a maximum where the marginal product of labor is maximized…
A: By labor, economists refer to the human effort which goes into producing goods and services in an…
Q: When labor increases from two to three workers, total product increases by per hour.
A: total production is the production produce by producer by using resources at particular period of…
Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…
A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…
Q: You are the owner of a puppet manufacturing company. Suppose that labour is the only variable input…
A: When labor is the only variable factor used in the production process then the marginal cost of…
Q: Which of the following describes the law of diminishing returns to labor? A. When one more…
A: The law of diminishing returns to labour states that as more and more units of labour are hired in…
Q: Why might marginal product be increasing at lower levels of output and decreasing at higher levels…
A: Marginal product (MP) is the extra output produced by one additional unit of input or raw material…
Q: What is the relationship between marginal product and marginal cost? Why do you suppose that is? Is…
A: Marginal Product: The term marginal product refers to the increase in total product due to the use…
Q: Does the MRTS of the production functions Q=L,K decrease? In this case, does the marginal product of…
A: Answer -
Q: Calculate a cost function from a production function and explain how economic costs differ from…
A: The economic cost is the money value of all resources in the business. It also implies the…
Q: Known function is the production of a commodity Q = 40X + 12X2 - 1.2X3 a. Calculate how many units…
A: a. The production function is given as follows: Units of input X in order to achieve maximum total…
Q: The short run is the time frame A) during which the quantities of all resources are fixed. B) during…
A: Production takes place in the short run while all planning is done in the long run.
Q: If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: What would happen to output if one input would increase and the other would not?
A: Answer: Introduction: Production involves many inputs such as land labor, and capital, etc. In the…
Q: Assuming the firm is minimizing its cost and the price of labour is $10 per unit and the price of…
A: In economics, the marginal product of labor is the change in output that results from employing an…
Q: What is the difference between a fixed input and a variable input?
A: Inputs are the resources that are used in the production of output. There are generally four inputs…
Q: QUESTION 8 Consider the production function F(A,K) = A*In(K), where A = 3 is a constant. What is the…
A:
Q: Explain how a change in the price of one input factor changes a firm’s long-run expansion path?
A: The firms, and businesses are the entities who are considered to be of utmost importance for the…
You are an employer seeking to fill a vacant position on an assembly line. Are you more concerned with the average product of labor or the marginal product of labor for the last person hired?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He pays his farm hands $28,000 a year. Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost?Calculate the Marginal Product (MP) at each input level. If the price of printer is $100 each, calculate the Value of the Marginal of labor (VMPL). If the wage rate (per week) is $1800 , how many workers will be employed? If the firm decides to hire 14 workers, what is the maximum wage the firm would be willing to pay?Calculate the size of the workforce needed for the companyto meet average weekly demand.
- If the marginal product of labor increases because of a technological advancement, it will likely cause a fall in the number of workers employed. an increase in the price of output produced by labor. a fall in the wage paid to labor. an increase in demand for labor. an increase in the supply of labor.How will automation affect the unskilled labor,Why does the marginal product of labor start to decrease after a certain number of workers are hired? What makes the difference? a) The variable input continues to increase while the fixed input is fixed. b) Both the variable and the fixed inputs are increasing at the same rate. is it a or b?
- In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number. Marginal Resource Total Labor Units of Labor Total Product Wage Rate Cost (Labor) Cost 10 300 $16 11 316 18 12 330 20 13 342 22 14 352 24 15 360 26Each of the following examples reflect some labour cost faced by an employer. Select all of those which are considered quasi-fixed labour costs. Select one or more: a. Harpreet spent $1,000 advertising a recent job opening b. Denise pays her entry-level employees an hourly wage of $20 c. John recently laid off five workers and gave them each $20,000 in severance pay d. Ahmed's sales employees earn an average annual commission of $50,000 e. Amanda spends $5,000 per year on supplemental health insurance for each of her employeesYou are the owner of a puppet manufacturing company. Suppose that labour is the only variable input to the production process. If the marginal cost of production is diminishing as more units of output are produced, what can you say about the marginal product of labour?
- The marginal product of a machine is 10 units of output per hour. The marginal product of labor is 6 units of output per hour. The rental rate of a machine is $4 per hour The hourly wage rate is $3 Is this firm minimizing its cost? Explain why or why not, and if not, which input should they switch towards and why?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 firm minimizes its costs by using inputs such that the marginal product of labor is 10 and the marginal product of capital is 20. The price of capital is $10 per unit. What must the price of labor be? (hint: the marginal product per dollar should be equal for both inputs)
