Q1. In which case Marginal Utility (MU) will be zero and negative? and why?

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....

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...

ECON 2106 1.   Short run marginal costs rise because of (a)        rising prices of variable inputs             ...

ECON 2106 1.   Short run marginal costs rise because of (a)        rising prices of variable inputs              (b)        declining productivity of fixed factors of production (c)        diminishing marginal productivity of variable inputs      (d)        reduced incentives to work in large plants 2.   When average total cost is declining as output increases, marginal cost must be (a)        declining                                  (c)        above average total cost (b)        below average total cost            (d)        rising 3. Total cost is $30 at 10 units of output and $32 at...

Determine which of the following statement below are correct. Multiple statements may be correct. If you...

Determine which of the following statement below are correct. Multiple statements may be correct. If you are asked to evaluate an approximate variable, you should consider a 10% tolerance for the variable (plus or minus 10%). A firm's production function is equal to Q = K^(1/2) L^(1/2) and the Marginal Product of Labor is equal to: MP(L) = 1/2 * K^(1/2) * L^(-1/2) You know that capital (K) is currently fixed at 100 units. When labor increases from 49 to...

1.If the total cost function is C(Q) = 15Q2+ 10, what is the marginal cost? 10/Q...

1.If the total cost function is C(Q) = 15Q2+ 10, what is the marginal cost? 10/Q 15Q 15Q+10/Q 30Q None of these. 2.When a firm increased its output by one unit, its AFC decreased. This is an indication that the law of diminishing returns has taken effect. MC < AFC. AVC < AFC. the firm is spreading out its total fixed cost. 3.If the production function is f(L, K) = aL +2aK where a > 0 is a constant, L...

Show working 21) The relationship Q = f(K, L) is an example of a A) cost...

Show working 21) The relationship Q = f(K, L) is an example of a A) cost function. B) production function. C) demand equation. D) profit equation. 28) After some point successive equal increases in a variable factor of production, when added to a fixed amount of inputs, will result in smaller increases in output. This is known as A) the long run. B) the law of diminishing marginal product. C) marginal physical product. D) short run average cost. 33) Suppose...

19. To maximize profits, a single-price monopolist will produce where Marginal costs = Marginal revenue: establishing...

19. To maximize profits, a single-price monopolist will produce where Marginal costs = Marginal revenue: establishing a price that is greater than their marginal cost. True False 20. As a consequence of the perfectly competitive firm producing the quantity of output at which: price equals marginal revenue and marginal cost, it will achieve "allocative efficiency" in the deployment of societies scarce resources. True False 21. In the "long-run," the perfect competitive achieves technical efficiency and the firm will produce at:...

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...

4.) Exhibit 7-8 Costs schedules for producing pizza Pizzas Fixed Cost Variable Cost Total Cost Marginal...

4.) Exhibit 7-8 Costs schedules for producing pizza Pizzas Fixed Cost Variable Cost Total Cost Marginal Cost 0 $      $    $      $    1     5 2 13 3 10 4 100 140 5 20 6 85 7 215 By filling in the blanks in Exhibit 7-8, the total cost of producing 3 pizzas is shown to be equal to: a $100. b $105. c $113. d $123. e $23. 6.) Constant returns to scale exist over the range of output...