Question

1. The daily production data of a firm are given below. The wage rate is MYR...

1. The daily production data of a firm are given below. The wage rate is MYR 20 per day for each labor (variable input) and it is the only variable cost incurred. Additionally, output refers to the total products and it is in hundreds of units.

Labor

Output

AP

MP

TVC

TC

MC

AFC

AVC

ATC

0

0

-

-

40

-

-

-

-

1

18

2

37

3

57

4

76

5

94

6

111

7

127

a. Complete these production data. Calculate the average and marginal product per labor, the total variable cost, total cost, marginal cost, average fixed cost, average variable cost and average total cost for each level. Show your calculations.

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..

b. Based on your answer above, evaluate the patterns and relationship between:

  1. Total product (TP) and marginal product (MP).

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

  1. Average product (AP) and marginal product (MP).

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

  1. Marginal product (MP) and marginal cost (MC).

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

b i) Till labour 3 when output is increasing with an increasing rate rate MP rises when Output(TP) rises increases at decreasing rate MP falls.

b ii) Relationship between AP and MP

When AP is rising , AP is less than MP ( till output 3) when AP is falling, AP remains greater than MP.

c iii) Relatipnship between MP and MC

In our example MC is constant. Here MP is more than MC till the output 2. At output 3 MP = MC after which MP kept on falling.

All the best.

In case of any query feel free to leave your doubt in comment section.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Labour (hrs) (Input) TP (Output) AP (Avg. Product) MP TVC TFC TC (Total Cost) AVC ATC...
Labour (hrs) (Input) TP (Output) AP (Avg. Product) MP TVC TFC TC (Total Cost) AVC ATC MC 0 0 9 35 222 15 50 22 70 30 85 39 100 48 110 Complete the table above, assuming that the labour costs are $8 / hr What is the point of maximum productivity : ____ units of labour (input) What is the AVC   _____ and ATC _____ at this quantity? What is the quantity of diminishing returns?    ____ What is the...
. The table below illustrates the quantity of output (in units) and total cost (TC, in...
. The table below illustrates the quantity of output (in units) and total cost (TC, in MYR) for a perfectly competitive firm that can sell its output at MYR 9 per unit. Quantity TC TVC ATC AVC MC TR MR Profit /Loss 0 3 0 - - - 0 - -3 1 6 2 12 3 21 4 33 5 49 a. Calculate the total variable cost (TVC), average total cost (ATC), average variable cost (AVC), marginal cost (MC), total...
3. Cost Tables (a) Fill in the following table, where TFC = Total Fixed Cost, TVC...
3. Cost Tables (a) Fill in the following table, where TFC = Total Fixed Cost, TVC = Total Variable Cost, TC = Total Cost, AFC = Average Fixed Cost, AVC = Average Variable Cost, ATC = Average Total Cost, and MC = Marginal Cost. Remember the following relationships: TFC + TV C = TC AF C = T F C/Q, AV C = T V C/Q, AT C = T C/Q MC = ∆TC ∆Q Output (Q) TFC TVC TC...
Complete the table below, which represents the production costs for a typical firm. TP is total...
Complete the table below, which represents the production costs for a typical firm. TP is total product (which is also Q). Please note that for the first row (where TP = 0), you cannot calculate the AFC, the AVC, the ATC and the MC, since there are 0 units being produced. However, you are expected to calculate the TC for the first row (where TP =0) and you are also expected to fill in all the other missing numbers in...
Suppose you are given the following information:             Price of variable input is $40/unit; Price of...
Suppose you are given the following information:             Price of variable input is $40/unit; Price of fixed input is $50/unit a. Using the above information, complete the followingtable Units of Fixed Input Units of Variable Input Output Marginal Product TFC TVC AFC AVC ATC MC 2 0 0 2 1 10 2 2 25 2 3 45 2 2 2 2 4 5 6 7 8 70 100 125 140 150 b. Draw graphs for AFC, AVC, ATC, and MC....
1. In the long run, economies of scale is a stage where Long-run ATC goes down...
1. In the long run, economies of scale is a stage where Long-run ATC goes down as quantity increases. Long-run ATC remains constant as quantity increases. Long-run ATC rises as quantity increases. 2. If AFC=60 and ATC=120 when output is 100, then total variable cost must be: 60 40 6,000 8,000 3. If AFC=60 and ATC=120 when output is 100, then total fixed cost must be: (fill in the blank with a number) 4. Which of the following is true?...
Ron is paying each worker $25 a day (minute) he rents the capital for $20 a...
Ron is paying each worker $25 a day (minute) he rents the capital for $20 a day. Create a table to show the average fixed cost (AFC), the average variable cost (AVC), the average total cost (ATC) and the cost (MC). TP AVC AFC ATC MC 0 5 17 23 27 29
a) The following tables gives you the cost schedule for a firm producing sugar. Calculate the...
a) The following tables gives you the cost schedule for a firm producing sugar. Calculate the average costs and the marginal cost and complete the cost schedule. Output(tons) FC($) VC($) TC($) AFC($) AVC($) ATC($) MC($) 250 200 450 300 200 500 350 200 570 400 200 660 450 200 780 b) Draw the typical shapes of the average costs (AFC,AVC, ATC) and MC. c) Explain the relationship between Marginal cost and Average total cost.
Use the following production function to answer the questions below where labor (L) is measured in...
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...
Use the following production function to answer the questions below where labor (L) is measured in...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT