Question

Labor Units (number of workers) | Total Product (cookies produced per hour) | Marginal Product of Labor | Average Product of Labor |

0 | 0 | --- | --- |

1 | 4 | ||

2 | 12 | ||

3 | 24 | ||

4 | 40 | 16 | 10 |

5 | 60 | ||

6 | 75 | ||

7 | 84 | ||

8 | 86 | 2 |

Use the information in the Table above to answer the following questions.

**a.** Complete the empty cells in the Table
**[13 points]**

**b.** At what level of employment(number of
workers) does diminishing marginal product set in? **[3
points]**

Answer #1

a)

Labor Units (number of workers) | Total Product (cookies produced per hour) | Marginal Product of Labor | Average Product of Labor |

0 | 0 | --- | --- |

1 | 4 | 4 | 4 |

2 | 12 | 8 | 6 |

3 | 24 | 12 | 8 |

4 | 40 | 16 | 10 |

5 | 60 | 20 | 12 |

6 | 75 | 15 | 12.5 |

7 | 84 | 9 | 12 |

8 | 86 | 2 | 10.75 |

the marginal product of n labor=(total product of n labor - the total product of p labor)/(n-p)............(n>p)

APL=TP/L

b)

at 7th worker

the MPL decreases from 6th to 7th, that shows the diminishing product of labor

Strawberry Farm
Amount of Labor
Total Product (bunches per foot)
Average Product
Marginal Product
0
0
1
100
2
250
3
250
4
200
5
900
6
930
A) Fill in the empty spaces of the table
B) When do diminishing marginal returns begin? Explain how you
know this.

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...

1) The marginal product of labor in the production of oatmeal
raisin cookies is 75 cookies per hour. The marginal rate of
technical substitution of hours of labor for hours of machine
capital is 1/10. What is the marginal product of capital? (5
pts)
2) A firm has a fixed production cost of $10,000 and a constant
marginal cost of production of $200 per unit produced. What is the
firm’s total cost function? What is its average cost function? (8...

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...

The cookie company in the mall hires only labor to produce
cookies. The workers are paid $70 per day, and the cost of renting
the space in the mall is $300 per day.
Number of workers
Daily output (cookies)
1
200
2
400
3
600
4
700
The daily fixed costs of production are
Choose one:A. $300 .B. $370 .C.
$140 .D. $70 .E. $0.
The labor cost per day of hiring two workers
is $ .
The total cost per day...

4. The table below shows the number of
cars produced by a car manufacturer. Car production depends on the
number of workers as follows:
Assume that all
other inputs other than labor are fixed. a. Complete the table by
calculating MPL and APL.
Over what range of labor are there increasing returns to scale?
diminishing returns to scale? Negative returns to scale?
Over what range of labor is MPL greater than
APL? What is happening to APL as employment
increases...

Number of
Workers Output per
Hour
0
0
1
7
2
12
3
15
4
17
5
18
According to the table above, if the product price is $5 and the
wage rate is $10 per hour, how many workers should this firm
hire?
a. 3
b. 5
c. 4
d. 1
e. 2

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...

Number of Workers
Number of Pizzas
1
20
2
40
3
65
4
80
5
90
6
95
7
90
For questions a and b refer to the above
table:
The table refers to the number of quantity of pizzas
that can be produced in a day what is the marginal product of the
4th worker?
With which worker will diminishing returns set
in?

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