EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 6, Problem 6.3P
a.
To determine
To draw: Graph of relationship between quantity (q) and labor (L)
b.
To determine
To explain: Average productivity of labor with a graph displaying diminishing productivity.
c.
To determine
To draw: Graph showing marginal productivity of labor and it being lower than average productivity.
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We R' Write is really worried about their production line for pens. The company is concerned that they are employing more workers on the production line than necessary. We R' Write has provided you with the production information for pens in the table below that corresponds to different numbers of workers on the production line.
Describe 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…
Digging calms by hand in Sunset Bay requires only labor input. The total number of calms obtained per hour (q) is given by :Q = 100√LWhere L is labor input per hour. A. Graph the relationship between q an LB. What the average productivity of labor in Sunset Bay? Graph this relationship and show that output per unit of labor input diminishes for increase in labor input. C. It can be shown that the marginal productivity of labor in Sunset By is given by:MPL =50√LGraph this relationship and show that labor’s marginal productivity is less than average productivity for all values of L . Explain why this is do.D. Explain the concept of diminishing returns to labor and how this concept related to increasing marginal costs.
Question 8 of 13
The following diagram depicts the production function of the farmers, where diminishing average product of labour is assumed. At A the average product of labour is 500,000/800 = 625
kg of grain per farmer. At B the average product of labour is 732,000/1,600 = 458 kg of grain per farmer. If you know that for 2,800 farmers the grain output is 894,000kg, then which of
the following is/are correct?
Kilogrammes of grain produced (thousands)
900
800-
700-
600-
500
400-
300-
200-
100-
0
0
400
800
B
1,200 1,600
Number of farmers
2,000 2,400
2,800
OA. The average product of labour when the labour input is 2,800 is 300.
OB. The decreasing slopes of the rays from the origin to the production function along the curve indicate the decreasing average product of labour.
OC. If the production function curve is an upward-sloping straight line, then there is no diminishing average product of labour.
OD. It is possible that initially there is an economy of scale: for example, going from…
Chapter 6 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 6.2 - Prob. 1TTACh. 6.2 - Prob. 2TTACh. 6.2 - Prob. 1MQCh. 6.2 - Prob. 2MQCh. 6.3 - Prob. 1TTACh. 6.3 - Prob. 2TTACh. 6.3 - Prob. 1MQCh. 6.3 - Prob. 2MQCh. 6.4 - Prob. 1TTACh. 6.4 - Prob. 2TTA
Ch. 6.5 - Prob. 1MQCh. 6.5 - Prob. 2MQCh. 6.5 - Prob. 3MQCh. 6.6 - Prob. 1TTACh. 6.6 - Prob. 2TTACh. 6.7 - Prob. 1MQCh. 6.7 - Prob. 2MQCh. 6.7 - Prob. 3MQCh. 6.7 - Prob. 4MQCh. 6 - Prob. 1RQCh. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - Prob. 4RQCh. 6 - Prob. 5RQCh. 6 - Prob. 6RQCh. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - Prob. 9RQCh. 6 - Prob. 10RQCh. 6 - Prob. 6.1PCh. 6 - Prob. 6.2PCh. 6 - Prob. 6.3PCh. 6 - Prob. 6.4PCh. 6 - Prob. 6.5PCh. 6 - Prob. 6.6PCh. 6 - Prob. 6.7PCh. 6 - Prob. 6.8PCh. 6 - Prob. 6.9PCh. 6 - Prob. 6.10P
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