Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 7, Problem 7P
b)
To determine
Marginal Product of the third unit of labor
c)
To determine
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(workers)
(boxes/day)
0
0
1
4
2
9
3
16
4
24
5
32
6
39
7
45
8
50
9
54
10
57
11
59
12
60
The cost of labor is $120/worker per day. The cost of capital is $300/day
Plot accurately (use a graphing program) the following diagrams. Please put titles on the
axes.
a. The total product curve.
b. The marginal product and average product curves (on the same diagram). Remember that
marginal product represents a change and should be plotted at the midpoints e.g. the
marginal product of the third worker should be plotted at 2.5 on the labor axis.
c. The total cost curve.
d. The marginal cost, average variable cost and average cost curves (on the same diagram).
Remember that marginal cost represents a change and should be plotted at the midpoints.
Quantity
(Q)
1
2
3
456700
8
Total
Fixed
Cost
(TFC)
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
Total
Variable
Cost
(TVC)
0.00
17.00
30.00
41.00
48.00
57.00
77.00
81.00
Total
Cost
(TC)
Average Average Average
Fixed
Variable
Total
Cost
Cost
Cost
(AFC)
(AVC)
(ATC)
Marginal
Cost
(MC)
Table showing Total Cost and Quantity of Output
Quantity of
Total
Average Total
Marginal Cost
Output
Cost
Cost
$100
1
$120
2
$135
3
$145
4
$160
5
$180
6
$205
7
$240
8
$285
$350
|10
$440
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Similar questions
- How do we calculate marginal product?arrow_forwardWhat is the output when this firm hires 4 workers? Marginal Variable Fixed Cost Labor Output Product Cost 10 0 $0 1 100 100 $5 2 250 $10 SSS $5 $5 $5 3 350 $15 $5 4 50 $20 $5 5 25 $25 $5 6 430 $30 $5 425 350 430 400arrow_forwardTotal Quantity Fixed Costs (FC) Variable Costs (VC) Costs of TC) Apples 0 80 1 80 117 197 332 2 80 252 485 3 4 80 656 845 80 765 6 80 1052 1197 1277 1440 1520 8 80 7arrow_forward
- 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 maximizedarrow_forwardOutput (Concession Stand Items) Number of Workers Employed Per Day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120 0 $2,000 2000 $8.00 0 -2000 0 0 0 0 8 100 2 $120 240 $2,000 2240 $8.00 800 -1640 2.40 20 22.40 2.40 8 400 4 $120 480 $2,000 2480 $8.00 3200 720 1.20 5 6.20 0.80 8 750 6 $120 720 $2,000 2720 $8.00 6000 3280 0.96 2.66 3.62 0.67 8 900 8 $120 960 $2,000 2960 $8.00 7200 4240 1.07 2.22 3.29 1.60 8 1,025 10 $120 1200 $2,000 3200 $8.00 8200 5000 1.17 1.95 3.12 1.92 8 1,125 12 $120 1440 $2,000 3440 $8.00 9000 5560 1.28 1.77 3.06 2.40…arrow_forwardExhibit 21-3 Marginal Physical Total Total Product of Variable Marginal Variable Fixed Input Input Variable Input Fixed Cost Cost Cost Output (units) (units) (units) (units) (dollars) (dollars)| (dollars) 1 $500 $0 1 1 10 (A) $500 $200 (F). 2 1 25 (B) $500 $400 (G) 3 1 45 (C). $500 $600 (H). 4 1 60 (D) $500 $800 (1) 5 1 70 (). $500 $1000 (). Refer to Exhibit 21-3. The average fixed cost of producing 25 units of output is a. indeterminable with the information given. b. $50.00. c. $2.50. d. $20.00. e. $500.00.arrow_forward
- workers ouput marginal product total cost average total cost marginal cost 0 0 0 200 0 $0 1 20 20 300 $15 $5 2 50 30 400 $8 $3.33 3 90 40 500 $5.56 $2.50 4 120 30 600 $5 $3.33 5 140 20 700 $5 $5 6 150 10 800 $5.33 $10 7 155 5 900 $5.8 $20 a.) can you explain dimisnishing marginal product based on those numbers? b.) compare the column for average total coat and the column for marginal cost. Explain the relationship.arrow_forwardOutput (Concession Stand Items) Number of Workers Employed Per Day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120 0 $2,000 2000 $8.00 0 -2000 0 0 0 0 8 100 2 $120 240 $2,000 2240 $8.00 800 -1640 2.40 20 22.40 2.40 8 400 4 $120 480 $2,000 2480 $8.00 3200 720 1.20 5 6.20 0.80 8 750 6 $120 720 $2,000 2720 $8.00 6000 3280 0.96 2.66 3.62 0.67 8 900 8 $120 960 $2,000 2960 $8.00 7200 4240 1.07 2.22 3.29 1.60 8 1,025 10 $120 1200 $2,000 3200 $8.00 8200 5000 1.17 1.95 3.12 1.92 8 1,125 12 $120 1440 $2,000 3440 $8.00 9000 5560 1.28 1.77 3.06 2.40…arrow_forwardOutput (Concession Stand Items) Number of Workers Employed Per Day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120 0 $2,000 2000 $8.00 0 -2000 0 0 0 0 8 100 2 $120 240 $2,000 2240 $8.00 800 -1640 2.40 20 22.40 2.40 8 400 4 $120 480 $2,000 2480 $8.00 3200 720 1.20 5 6.20 0.80 8 750 6 $120 720 $2,000 2720 $8.00 6000 3280 0.96 2.66 3.62 0.67 8 900 8 $120 960 $2,000 2960 $8.00 7200 4240 1.07 2.22 3.29 1.60 8 1,025 10 $120 1200 $2,000 3200 $8.00 8200 5000 1.17 1.95 3.12 1.92 8 1,125 12 $120 1440 $2,000 3440 $8.00 9000 5560 1.28 1.77 3.06 2.40…arrow_forward
- Page of 3 Compute the long-run costs in the following table. The price per unit of capital is $50 and per unit of labor is $30.arrow_forwardExhibit 21-3 Marginal Physical Total Total Product of Variable Marginal Variable Fixed Input Input Variable Input Fixed Cost Cost Cost Output (units) (units) (units) (units) (dollars) (dollars) (dollars) 1 $500 $0 1 1 10 (A) $500 $200 (F) 1 25 (B) $500 $400 (G) 3 1 45 (C). $500 $600 (H). 4 1 60 (D) $500 $800 (1) 5 1 70 (E. $500 $1000 () Refer to Exhibit 21-3. The total cost of producing 45 units of output is а. $1,100. b. $1,000. c. $900. d. $950. e. $1,050.arrow_forwardTable: Cost Data Quantity of Output 0 1 2 3 4 5 6 7 Variable Cost (VC) 0 50 70 100 140 190 250 320 Total Cost (TC) 50 100 120 none of these 190 10 240 50 150 190 240 300 370 What is the average fixed cost of producing 5 units?arrow_forward
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