Calculation of average product of labor.

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Answer 1

Question

Chapter 11, Problem 11.3.9PA

Subpart (a):

To determine

Calculation of average product of labor.

Subpart (b):

To determine

Calculation of marginal product of labor.

Subpart (c):

To determine

Calculation of marginal product of labor.

Subpart (d):

To determine

Calculation of marginal product of labor and law of diminishing returns.

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Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive market. The following table shows the company's production function: Output (Number of workers) (Shovels) Labor 1 100 195 275 4 340 380 Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. 40 Producion Function 340 100 130 40 LABOR (Number of workana) Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circle symbol). Note: Remember to plot each point halfway between two integers. For example, when the number of workers increases from 0 to 1, the MPL of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. (genoygl indino

Barb's Bakery employs three workers who produce 6 cakes per hour. After Barb hires a fourth worker, production increases to 12 cake per hour. Which of the following statements is TRUE? a. b. C. d. Because the marginal product of the fourth worker is greater than the average product of three workers, the average product must rise. Because the marginal product of the fourth worker is less than the average product of three workers, the average product must fall Because the marginal product of the fourth worker is less than the average product of three workers, the average product must rise. Because the marginal product of the fourth worker is greater than the average product of three workers, the average product must fall.

1. Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus's output during a given day: Workers 0 1 2 3 4 5 6 7 Output (Brooms) 0 20 50 90 120 140 150 155 Marginal Product (Brooms) Total Cost ($) Average Total Cost ($) Marginal Cost ($) a) Fill in the column of marginal products. What pattern do you see? How might you explain it? b) A worker costs $100 a day, and the firm has fixed costs of $200. Use this information to fill in the column for total cost. c) Fill in the column for average total cost. What pattern do you see? Now fill in the column for marginal cost. What pattern do you see? d) e) Compare the column for marginal product with the column for marginal cost. Explain the relationship. f) Compare the column for average total cost with the column for marginal cost. Explain the relationship. g) What is Nimbus's efficient scale?

Answer 2

Question

Chapter 11, Problem 11.3.9PA

Subpart (a):

To determine

Calculation of average product of labor.

Subpart (b):

To determine

Calculation of marginal product of labor.

Subpart (c):

To determine

Calculation of marginal product of labor.

Subpart (d):

To determine

Calculation of marginal product of labor and law of diminishing returns.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 11.3.9PA

Subpart (a):

To determine

Calculation of average product of labor.

Subpart (b):

To determine

Calculation of marginal product of labor.

Subpart (c):

To determine

Calculation of marginal product of labor.

Subpart (d):

To determine

Calculation of marginal product of labor and law of diminishing returns.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 11, Problem 11.3.9PA

Subpart (a):

To determine

Calculation of average product of labor.

Subpart (b):

To determine

Calculation of marginal product of labor.

Subpart (c):

To determine

Calculation of marginal product of labor.

Subpart (d):

To determine

Calculation of marginal product of labor and law of diminishing returns.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11.3.9PA

Subpart (a):

To determine

Calculation of average product of labor.

Subpart (b):

To determine

Calculation of marginal product of labor.

Subpart (c):

To determine

Calculation of marginal product of labor.

Subpart (d):

To determine

Calculation of marginal product of labor and law of diminishing returns.

Answer 6

Chapter 11, Problem 11.3.9PA

Subpart (a):

To determine

Calculation of average product of labor.

Answer 7

Chapter 11, Problem 11.3.9PA

Subpart (a):

To determine

Calculation of average product of labor.

Answer 8

Subpart (b):

To determine

Calculation of marginal product of labor.

Answer 9

Subpart (b):

To determine

Calculation of marginal product of labor.

Answer 10

Subpart (c):

To determine

Calculation of marginal product of labor.

Answer 11

Subpart (c):

To determine

Calculation of marginal product of labor.

Answer 12

Subpart (d):

To determine

Calculation of marginal product of labor and law of diminishing returns.

Answer 13

Subpart (d):

To determine

Calculation of marginal product of labor and law of diminishing returns.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 11.A - Prob. 1RQ Ch. 11.A - Prob. 2RQ Ch. 11.A - Prob. 3RQ Ch. 11.A - Prob. 4PA Ch. 11.A - Prob. 5PA Ch. 11.A - Prob. 6PA Ch. 11.A - Prob. 7PA Ch. 11.A - Prob. 8PA Ch. 11.A - Prob. 9PA Ch. 11.A - Prob. 10PA

Calculation of average product of labor.

Solution Summary: The author explains the law of diminishing returns, which states that adding more of a variable input (such as labor) to the same amount of capital will cause the marginal product to decline.

Calculation of average product of labor.

Calculation of marginal product of labor.

Calculation of marginal product of labor.

Calculation of marginal product of labor and law of diminishing returns.

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