ESS OF ECON AC 11E
11th Edition
ISBN: 9781264092864
Author: SCHILLER
Publisher: MCG
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Question
Chapter 5, Problem 8P
To determine
The Marginal Physical Product of the fifth worker as mentioned in the given figure when the investment in the new machinery is made to double the productivity of every worker.
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A firm employs M workers per week and the length of the workweek at the firm is H Let MPM be the added output from an additional employee and let MPH be the added output from a one hour increase in the workweek at the firm. MEM and MEH are, respectively, the marginal expense of an added worker and of an added hour of work. At present, the cost of an added unit of output produced by hiring more workers is $5 while the cost of an added unit of output produced by employing existing workers for more hours is $3. Is the firm maximizing profits given its current employment level and workweek? If your answer is yes, explain why. If your answer is no, explain why not and discuss what adjustments the firm should make.
It's a general question. There's no given output being produced by added workers and additional hours.
You observe that MPL > APL and MPL is decreasing but positive as more labor input is used.
Output must be
rate and average productivity 'APL' must be
at
increasing
decreasing
Kevin, a worker in Volcania, can produce 182 baskets of Peaches in a(n) 11-hour shift. Calculate Kevin's labor productivity.
basket/hour
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