Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 11, Problem 3SPA
To determine
Average product curve.
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Quantity of Labor
(workers)
Total Product (units
per hour)
0 12 34 56
0 259 151817
The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the
worker because
A) 4th; the average product of labor is also increasing
B) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker
C) 3rd; the average product of labor is also increasing
D) 5th; output declines with the 6th worker
E) 5th; output is maximized
K
Matt's candle factory rents equipment for making candles and
hires students
Matt pays $140 a day for equipment and $200 a day for each
student hired
The table shows Matt's total product schedule
Construct Matt's total variable cost and total cost schedules Fill
in the columns in the table.
GEXER
Labor
(workers
per day)
23WN
4
5
Total
product
(candles per day)
33
54
71
85
Total variable
cost
Total
cost
(dollars per day)
Labor (workers)
Output (frijoles)
Total cost (dollars)
0
0
1,000
5
1000
3,000
10
3000
5,000
15
4000
7,000
20
4500
9,000
The above table gives some production and cost information for a restaurant selling Frijoles. What is the average total cost of producing 4,500 frijoles?
Chapter 11 Solutions
Macroeconomics
Ch. 11.1 - Prob. 1RQCh. 11.1 - Prob. 2RQCh. 11.2 - Prob. 1RQCh. 11.2 - Prob. 2RQCh. 11.2 - Prob. 3RQCh. 11.3 - Prob. 1RQCh. 11.3 - Prob. 2RQCh. 11.3 - Prob. 3RQCh. 11.3 - Prob. 4RQCh. 11.3 - Prob. 5RQ
Ch. 11.4 - Prob. 1RQCh. 11.4 - Prob. 2RQCh. 11.4 - Prob. 3RQCh. 11.4 - Prob. 4RQCh. 11.4 - Prob. 5RQCh. 11 - Prob. 1SPACh. 11 - Prob. 2SPACh. 11 - Prob. 3SPACh. 11 - Prob. 4SPACh. 11 - Prob. 5SPACh. 11 - Prob. 6SPACh. 11 - Prob. 7SPACh. 11 - Prob. 8SPACh. 11 - Prob. 9SPACh. 11 - Prob. 10SPACh. 11 - Prob. 11SPACh. 11 - Prob. 12SPACh. 11 - Prob. 13SPACh. 11 - Prob. 14SPACh. 11 - Prob. 15APACh. 11 - Prob. 16APACh. 11 - Prob. 17APACh. 11 - Prob. 18APACh. 11 - Prob. 19APACh. 11 - Prob. 20APACh. 11 - Prob. 21APACh. 11 - Prob. 22APACh. 11 - Prob. 23APACh. 11 - Prob. 24APACh. 11 - Prob. 25APACh. 11 - Prob. 26APACh. 11 - Prob. 27APACh. 11 - Prob. 28APACh. 11 - Prob. 29APACh. 11 - Prob. 30APACh. 11 - Prob. 31APACh. 11 - Prob. 32APA
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Similar questions
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- b. Manton Bakery is a company that bakes bread. Here is the relationship between the number of workers at the bakery and Manton's output in a given day: Workers 0 1 2 3 4 5 6 7 Output loaves 0 20 50 90 120 140 150 155 Marginal Total Average Product Cost Total Cost Marginal Cost (i) Fill in the column of marginal product. What pattern do you see? How might you explain it? (ii) A skilled baker costs £100 a day, and the firm has fixed costs of £200. Use this information to fill in the column for total cost. Fill in the columns for average total cost and marginal cost. What patterns do you see? (iii) Compare the column for average total cost and the column for marginal cost. Explain the relationship.arrow_forwardTotal cost Labor (workers) |Output (frijoles) (dollars) 1,000 1,000 3,000 10 3,000 5,000 15 4,000 7,000 20 4,500 9,000 The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average total cost of producing 4,500 frijoles? ... O A. $2 O B. $9,000 C. $8,000 O D. $225 O E. More information is needed to determine the answer.arrow_forwardQuestion 32 The following table shows the information about the production function for Dave's ice-cream shop. Quantity of Ice cream (per hour) Quantity of Labor (workers) 7 1 20 2 38 50 4 60 a. The marginal product of labor of the second worker is b. Diminishing returns to labor occurs when Dave hires the c. What are the examples of the variable cost and fixed cost in Dave's shop? units of ice cream. worker.arrow_forward
- 25 es A firm's long run total costs are given in the table below. Instructions: Round your answers to two decimal places. a. Fill in the long run average total cost column. Output 1 2 3 st in 5 6 7 Long run total cost ($) 18 24 28 30 34 40 283 48 (Click to select) 63 80 Long run average total cost ($) K b. Over what production range does this firm experience economies of scale? (Click to select) c. Over what production range does this firm experience constant returns to scale? (Click to select) d. Over what production range does this firm experience diseconomies of scale?arrow_forward1. Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus's output during a given day: Workers e) f) g) 0 1 2 3 4 5 6 7 Output (Brooms) 0 20 50 90 120 140 150 155 Marginal Product (Brooms) Total Cost ($) Average Total Cost ($) Marginal Cost ($) column for marginal cost. What pattern do you se Compare the column for marginal product with the column for marginal cost. Explain the relationship. Compare the column for average total cost with the column for marginal cost. Explain the relationship. What is Nimbus's efficient scale?arrow_forward6 5 nts eBook Print References Mc Graw Hill Output 0 1 2 3 4 5 6 7 8 9 $ Total Cost $2,500 3,410 4,040 4,480 4,900 5,220 5,540 6,310 7,320 9,710 units variabl Cost $ 0 b. What is the value of total fixed cost? units 910 1540 1980 2400 2720 3040 3810 4820 7210 Marginal Cost 1 c. What is the most productive level of output? $ 910 630 440 420 320 320 770 1010 2390 d. At what output is economic capacity? Output: e. If TFC doubled, what is the marginal cost of the 7th unit? Marginal cost: $ Average Total Cost 1 $ 3410 2020 1493.33 H a 1225 1044 923.33 901.42 915 1078.89 a Average Variable Cost D $ 1 625 500 416.67 35713 312.5 27778arrow_forward
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