Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 18, Problem 4PA
Subpart (a):
To determine
To calculate: Price in the
Subpart (b):
To determine
To calculate: Price in the perfect competitive market.
Subpart (c):
To determine
To calculate: The marginal product and the value of marginal product.
Subpart (d):
To determine
To calculate: The marginal product and the value of marginal product.
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Students have asked these similar questions
There are big efficient farms in Brazil that use lots of machinery competing against many small farmers with fewer resources. For this discussion, use what you've learned about me saying product and costs to discuss why big farms are driving market supply for green coffee beans and why some of the things being done tk support little farms might work. What do you think the cost curves for a big farm look like vs. for a small independent farm. In the short run, would big the big farm have more labor? Would the types of calital be different between the two?
Question 1.A
Complete the following table and what production technique should this firm use:
Assuming the price of capital (k) is $5 and the price of labor (L) is $10, and the price of commodity (Q) is $3.
Technique
Q
L
K
TR
TC
Profit(π)
A
50
10
6
B
50
9
8
C
50
5
10
D
50
12
8
E
50
2
10
F
50
7
12
Nimubs, 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 Output Marginal Product Total Cost Average Total Cost Marginal Cost
0
20
50
90
0
1
2
3
A worker is paid $100 a day, and the company's fixed cost is $200. What is the marginal cost as
Nimbus's output increases from 50 brooms to 90 brooms?
$3.33
$2.5
$5.56
$100
Chapter 18 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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