Question

Use the table showing output and costs for Betty Lou's Burritos to answer the questions. Round your answers to two decimal places.

Labor (workers per day) | Output (units per day) | Total fixed cost ($ per day) | Total variable cost ($ per day) | Total cost ($ per day) |
---|---|---|---|---|

0 | 0 | 50 | 0 | 50 |

1 | 8 | 50 | 25 | 75 |

2 | 12 | 50 | 50 | 100 |

3 | 20 | 50 | 75 | 125 |

4 | 25 | 50 | 100 | 150 |

5 | 32 | 50 | 125 | 175 |

What is the marginal cost of going from 2 workers per day to 3 workers per day?

marginal cost of the third worker: $

What is the marginal cost of going from 4 workers per day to 5 workers per day?

marginal cost of the fifth worker: $

Answer #1

3. Use the following table to complete the question.
Workers
Output
Marginal Product
Total Cost
Average Total Cost
Marginal Cost
0
0
1
20
2
50
3
90
4
120
5
140
6
150
7
155
a) A worker costs $100 a day, and the firm has fixed costs of
$200. Use this information, fill in the table.
b) What is the relationship between average total cost and
marginal cost?
c) What is the relationship between marginal product and
marginal...

3. Use the following table to complete the question.
Workers
Output
Marginal Product
Total Cost
Average Total Cost
Marginal Cost
0
0
1
20
2
50
3
90
4
120
5
140
6
150
7
155
a) A worker costs $100 a day, and the firm has fixed costs of
$200. Use this information, fill in the table.
b) What is the relationship between average total cost and
marginal cost?
c) What is the relationship between marginal product and
marginal...

The table below shows the quantity of workers and total output
for a local pizza parlor. Answer the following questions based on
this table:
Quantity of workers
Total Out put
0
0
1
3
2
3
17
4
22
5
26
6
24
a. When the owner hires 4 workers, the average product of labor
is nothing pizzas. (Enter your response rounded to
two decimal places
b the marginal product of the fifth worker is nothing
pizzas. (Enter...

Use the table below to answer questions about a firm’s hiring
decision.
Labor (workers)
Output (units)
Total Cost ($)
0
0
$50
1
15
$60
2
27
$70
3
37
$80
4
45
$90
5
50
$100
What is the total cost when the marginal product of labor is
10?
Choose one:A. $60 B. $70 C.
$20D. $90 E. $30F.
$40G. $10H. $50I.
$80 J. $100
What is the total variable cost when the marginal product of labor
is...

MicroEcon
PLEASE EXPLAIN ANSWERS
Use the table below to answer questions 4 to 6
Units of Capital
Units of Labor
Output
2
0
0
2
1
20
2
2
50
2
3
75
2
4
80
4. The marginal product of the second unit of the variable input
(labor) is
(a)
20
(c) 30
(b)
25
(d) 50
5. Diminishing marginal productivity occurs with
which unit of labor?
(a)
first
(c) third
(b)
second
(d) fourth
6. Short run...

Use the following table to answer questions a-c.
Output
(Q):
0
1
2
3 4
5
6
Total Cost (TC):
$37
$45 $52
$61 $74
$91 $110
a. What is the average fixed cost of producing 3 units of
output?
b. What is the marginal cost of producing the third unit of
output?
c. At what level of output does the firm encounter diminishing
marginal returns? How do you know?

Consider a firm where the optimal output is 36 units per day. If
the firm pays its workers a wage of $50 per day, each worker
produces an output of 4 units. If it pays its workers a wage of
$100 per day, each worker produces an output of 9.
What is the profit-maximizing strategy for producing 36 units
of output?
Assuming the going wage rate for comparable workers is $50, can
the firm be described as paying an efficiency...

a) The table below shows the production schedule of a jeans
manufacturing unit. Calculate the marginal product of labor and
discuss whether it follows the law of diminishing marginal product.
Explain why diminishing relationship exist. Draw a graph showing
the relationship between the total output and marginal output.
Number of workers
Output(’000 numbers per week)
Marginal product
0
0
1
100
2
150
3
175
4
190
5
200

Please refer to the following incomplete data describing costs
and revenues for a monopolistic firm. Assuming that this firm wants
to maximize profits, how much profit will this firm earn? Output
Price Total Revenue Marginal Revenue Total Cost Marginal Cost
Average Total Cost 0 $100 $0 na $50 na na 1 $90 $90 $90 $65 $15 ? 2
$80 $160 ? $75 ? $38 3 $70 $210 ? $95 $20 $32 4 $60 $240 $30 $125 ?
$31 5 $50...

Use the following production function to answer the questions
below where labor (L) is measured in workers per day and output (Q)
is number of units per day. Compute marginal physical product
(MPP), marginal cost (MC), and average total cost (ATC)
L
Q
MPP
TVC
TC
MC
ATC
0
0
$0
$12
1
8
8
20
2
20
16
28
3
28
24
36
4
32
32
44
5
34
40
52
Suppose a firm had two sewing machines and...

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