EXPLORING ECONOMICS
8th Edition
ISBN: 2818000015614
Author: Sexton
Publisher: SAGE
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 15P
To determine
(a)
To find:
The marginal product for the 51st worker.
To determine
(b)
To find:
The marginal cost to produce one more unit of output.
To determine
(c)
To explain:
The effect on
To determine
(d)
To explain:
The effect on marginal cost of vest with the addition of the 52nd worker and the reduction of marginal product to 160 vests per month.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Aaron has been spending five nights studying for his math tests and his current grade in the course is 90 percent.
He decides to take a part-time job and study only four nights for his next test.
As a result, after his next test, his grade falls to 70 percent.
What is Aaron's marginal cost of working one night a week?
Aaron's marginal cost of working one night a week is
OA. 20 percentage points
OB. greater than 70 percentage points and less than 90 percentage points
OC. 70 percentage points
OD. 90 percentage points
Your construction company has built 50 houses so
far this year at a total cost to the company of $8
million. If the company builds a 51st house, its total
cost will increase to $8.18 million. What is the
marginal cost of the 51st house?
Magnificent Blooms is a florist specializing in floral arrangements for weddings,
graduations, and other events. Magnificent Blooms has a fixed cost associated with space
and equipment of $100 per day. Each worker is paid $50 per day. The daily production
function for Magnificent Blooms is shown in the accompanying table.
Quantity of labor
(workers)
Quantity of floral
arrangements
0
0
1
5
2
9
3
12
14
5
15
a. Calculate the marginal product of each worker.
Quantity of labor
(workers)
1
Marginal product
2
3
Knowledge Booster
Similar questions
- a software production firm, average product has started falling and total output indicated diminishing trend. The production manager Mr. Yahya called you and asked you to see the condition of marginal product. You analyzed the situation and reported that marginal product falling more than average product. Mr. Yahya got surprised. In your opinion which situation the firm is heading to?arrow_forwardCalculate 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?arrow_forwardQuestion 2 A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000.00. the cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company’s cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? Timothy quits his job which pays $84000 a year, to enrol in a 2-year graduate programme. His annual school expenses are $58000 for tuition, $9500 for books and 3600 for food. What is his opportunity cost of attending the graduate program? A motor vehicle assembly plant requires the use of both capital and labour. the telsa manufacturing plant is considering increasing the number of workers to increase production. Does diminishing returns hold in this scenario yes/no? explain. Explain how each of the following situations would affect…arrow_forward
- Gull Roza is a florist specializing in floral arrangements for weddings, graduations, and other events. Gull Roza has a fixed cost associated with space and equipment of $50 per day. Each worker is paid $80 per day. The daily production function for Gull Roza is shown in the accompanying table. Quantity of Labor (workers) Quantity of floral arrangements 0 0 1 110 2 200 3 270 4 300 5 320 6 320 Calculate the marginal product of each worker. Calculate the marginal cost, Average total cost, and average variable cost of each level of output.arrow_forwardThe 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 9을arrow_forwardConsider a firm that produces car repairs. All inputs are fixed except the number of workers hired to make repairs. The schedule of output as the number of workers changes is : Number of Workers Repairs Completed(per day) Marginal Product ( per day) of that worker 1 3 3 2 9 ? 3 18 9 4 30 12 5 ? 15 6 52 7 7 58 6 8…arrow_forward
- Jamie owns a Nail Salon. The marginal product of the labor Jamie employs (MPL) is equals 20 pedicures per week and the marginal product of her salon's capital (MPK) equalp 50. Jamie pays her employee $600 per week and faces a price of capital is $1500 per week. Then: Select one: a. Jamie is minimizing her costs because (MPL/PL) = (MPK/PK) b. Jamie is not minimizing her costs because (MPL x PL) < (MPK x PK) O c. Jamie is minimizing her costs because she is a price-taker in the markets for labor and capital O d. Jamie is not minimizing her costs because (MPL x PL) = (MPK x PK)arrow_forwardDescribe where the law of diminishing marginal productivity begins for We R' Write. We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not? If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why? Number of Workers per Day Pens Produced per Day Average Product Marginal Product Price per Pen Total Value Product Average Value Product Marginal Value Product Price of Worker per Day 0 0 --- --- $3.50 $0.00 --- --- $560 15 1,000 66.67 67 $3.50 $52.50 $233.33 $233.33 $560 30 2,700 90.00 113 $3.50 $105.00 $315.00 $396.67 $560 45 5,100 113.33 160 $3.50 $157.50 $396.67 $560.00 $560 60 7,900 131.67 187 $3.50 $210.00 $460.83 $653.33 $560 75 12,000 160.00 273 $3.50 $262.50 $560.00…arrow_forwardAt Elliot's shoe factory, when they produce 30 pairs of shoes their total cost is $500. Elliot's marginal cost to produce the 31st pair of shoes is $61. What is the average total cost of 31 pairs of shoes?arrow_forward
- Suppose that you and a friend have started a pizza delivery business. First you had to find a shop front to make the pizzas and this costs $20,000 per year plus set up costs of $45,000 for the oven and kitchen set up. You estimate that the daily costs of labour will be $300; the ingredient cost of making a pizza is around $2.50 each and delivery is around $2 per pizza. Calculate the fixed costs of this business. If you use your combined savings to pay these costs what is the estimated implicit cost of starting the business in the first year if the interest rate is 4% per year. The government locks down the economy to prevent the spread of a deadly infectious virus, but still allows food delivery (assume that your business is one of many in a competitive market). Explain the impact of that policy on the supply, demand, equilibrium on market of pizzaarrow_forwardNimbus Ltd. makes brooms and then sells them door to door. Here is the relationship between the number of workers and Nimbus’s output in a given day:Average Total Cost36Output0130270120451601907210220Marginal ProductTotal CostMarginal Costa. Calculate and fill in the column of marginal products. What pattern do you see? How might you explain it? Hints: show your calculations. b. A worker costs $150 per day, and the firm has fixed costs of $300. Use this information to calculate and fill in the column for total cost. Hints: show your calculations. c. Calculate and fill in the column for average total cost. (Recall that ATC=TC/Q.) What pattern do you see? Hints: show your calculations.arrow_forwardQUESTION 1 Helen produces first-aid kits using labor and capital with the production function q= 6L0.8 K0.2, where the wage is $5 and rental rate is $3. Helen's Total Cost function if her capital is fixed at 50 units is C(q)-0.2q1.25 +150. What would be total cost at 50 units of first aid kit. A $153.56 B. $176.62 OC $213.32 D.$161.19 QUESTION 2 With reference to Question 1, at how many units of first aid kit does Average Cost (AC) and Marginal Cost (MC) cross each other? A 505 Units B. 350 Units) OC 150 Units D.605 Unitsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncMicroeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage LearningEssentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337794992/9781337794992_smallCoverImage.jpg)
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781285859460/9781285859460_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)