Question

Suppose your business is currently employing 750
workers, the only variable input, at a wage rate of $48. The
average product of labour is 96, the last worker added 6 units to
total output and total fixed cost is $12000.

Queation

a. What is the marginal cost?

b. What is the average variable cost?

c. How much output is being produced?

d. What is the average total cost?

e. Is average variable cost increasing or decreasing? What about
average total cost?

Answer #1

suppose that a firm's only variable cost is labor. when 100
workers are used, the average product of labor is 60, and the
marginal product of the 100th worker is 50. the wage rate is $25
and the total fixed cost is $1000. (show all calculations)
A) what is the average variable cost?
B) what is the marginal cost?
C) what is the average total cost?
D) The following are either true or false. indicate which is
correct and explain....

Total cost is calculated as _____.
Select one:
a.
average fixed cost plus average variable cost
b.
fixed cost plus variable cost
c.
the additional cost of the last unit produced
d.
marginal cost plus variable cost
e.
marginal cost plus fixed cost
--------------------------------------------------------------------------------------
The law of diminishing marginal returns states that:
Select one:
a.
long-run average cost declines as output increases.
b.
if the marginal product is above the average product, the
average will rise.
c.
as units of...

1)
Suppose a firm is currently operating with decreasing marginal
returns and the marginal cost of the last unit produced was $40.
Which of the following may be the marginal cost of the next
unit?
Group of answer choices
a $50
b $40
c $30
d $20
2)
Suppose a producer currently is experiencing decreasing marginal
returns. This means that as they produce more
Group of answer choices
a Total variable costs will increase at a decreasing rate
b Total...

Suppose that a firm has only one variable input, labor, and firm
output is zero when labor is zero. When the firm hires 6 workers it
produces 90 units of output. Fixed cost of production are $6 and
the variable cost per unit of labor is $10. The marginal product of
the seventh unit of labor is 4. Given this information, what is the
total cost of production when the firm hires 7 workers? (Show your
work)

Which of the following is most likely to be a variable cost for
a manufacturer?
A. energy
costs. C.
rental payments on computer equipment.
B. interest payments on business
loans. D.
real estate taxes.
3. If a firm’s accounting profit is positive,
A. its economic profit will also be
positive.
B. its economic profit will be positive
if the accounting profit exceeds implicit
costs.
C. its revenues cover both explicit and
implicit costs.
4. Economic profit can be best defined as:
A....

5) Steve is deciding between starting a business that will have
$70,000 in revenues and $40,000 in explicit costs, or instead
accepting a job offer than will pay him $50,000. What is the
economic profit of the business?
Group of answer choices
a -$30,000
b -$20,000
c $20,000
d $30,000
6)
Which of the following must be true if a firm is operating with
decreasing marginal returns?
Group of answer choices
a Output will increase at an increasing rate as...

1. If the absolute value of the Technical Rate of Substitution
is increasing:
a. A firm will have a concave isoquant.
b. The value of the |TRS| does not depend on the quantity of
inputs.
c. A firm will be likely to use a mix inputs rather than use all of
one or the other. d. All of the above.
2. If MPL/MPK = 2.
a. the last machine is two times as productive as the last worker.
b. the...

(a) Calculate marginal costs, total costs, average fixed costs,
average variable costs and average total costs, given the following
table. Fixed costs are $100.
Output
Total Variable Cost
Marginal Cost
Total Cost
Average Fixed Cost
Average Variable Cost
Average Total cost
0
0
1
60
2
90
3
110
4
150
5
230
6
450
7
610
8
810
(b) Between what levels of output is there increasing marginal
productivity?
(c) If labour were the only input to this production...

LeBron
Factory
Number
of
Workers
Number
of
Machines
Output
(chairs
produced
per hour)
Marginal
Product of
Labor
Cost of
Workers
Cost of
Machines
Total
Cost
?1
?2
?5
?2
?2
?10
?3
?2
?20
?4
?2
?35
?5
?2
?55
?6
?2
?70
?7
?2
?80
Refer to Table above.
First, complete the missing information in the Table
above.
1.Each worker at the
LeBron Chair Factory costs $12 per hour. The cost of each machine
is $20 per day regardless...

Question 1
Lauren has 11 people working in her tangerine grove. The total
product of eleven workers is 113 bushels of tangerines and the
total product of 12 workers would be 115 bushels. If she hires the
twelfth worker, the marginal product of that worker will be:
115 bushels
113 bushels
2 bushels
Insufficient information to determine
Question 2
Lauren has 11 people working in her tangerine grove. The total
product of eleven workers is 113 bushels of tangerines and...

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