Aphria Corporation listed on the Toronto Stock Exchange (TSX) has the following output data. We are in the short run, thus all factors of production, except labour are fixed. Answer the following question. Number of Workers 0 1 2 3 4 5 6 Units of Output 0 25 60 103 160 210 240 Diminishing marginal returns become evident with the addition of the Multiple Choice third worker. fourth worker.
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- For the following output data, assume that the amounts of all nonlabour resources are fixed. Number of Workers Output 0 1 40 2 75 3 105 4 130 5 150 6 160 Diminishing marginal returns is first evident when the Sth 4th 3rd 2nd 6th worker is hired.OFair,%20Sharon%20E.%200ster%20-%20Principles%20of%20Econo.. Page view AN Read aloud I Draw E Highlight Erase 2.6 The following table represents data for Sally's Salon. Draw a graph showing the total product, marginal prod- uct of labor, and average product of labor. Identify where increasing returns, diminishing returns, and negative returns set in on the total product curve. Labor Units Total Product (Haircuts Per Day) Marginal Product of Labor Average Product (Employees) of Labor 7. 7.00 17 10 8.50 3 31 14 10.33 4 44 13 11.00 55 11 11.00 64 9. 10.67 69 9.86 69 8.63 9. 65 -D4 7.22 10 59 5.90 2.7 Assume that we have a production process that exhibits increasing and then decreasing marginal productivity. That is, as we increase output, the marginal product of labor starts at some level above zero, rises to a maximum, and then eventually falls to zero. Which of the following statements is truc? Briefly explain 6:07 PM Desktop d) ENG 4/23/2021Suppose that labor is the only input used by aperfectly competitive firm. The firm’s productionfunction is as follows:Days of Labor Units of Output0 days 0 units1 72 133 194 255 286 297 29a. Calculate the marginal product of each additionalworker.b. Each unit of output sells for $10. Calculate thevalue of the marginal product of each worker.c. Compute the demand schedule showing thenumber of workers hired for all wages from zeroto $100 a day.d. Graph the firm’s labor-demand curve.e. What happens to this demand curve if the price ofoutput rises from $10 to $12 per unit?
- How is the LRAC derived? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b Question 28 C d by drawing an average cost curve in which capital is variable but labor is fixed at the largest amount the firm can hire by assuming the firm is minimizing total costs at all levels of output by finding the largest amount of capital the firm can afford to use, and viewing the output capabilities of that capital amount by finding the lowest average cost of producing any level of output, assuming all inputs can be variedExplain Law of Diminishing Marginal Returns using the following example. The weekly number of repairs produced by a computer repair shop depends upon numberof workers.No of Workers No of Repairs1 02 83 204 355 456 527 578 60Workers per day Variable cost in S per day Pizza Fixed cost in S per day 400 6.00 400- 400. 400 400 Eper day 01 400 0- 200 (350 1750 450 600 31 ... .... 13 DIS 145 170 260- 850 400 800 28. Referring to the table above, when thesecond worker.is hired, the marginal cost per pizza is equal to: a. )$3 5. $75 'mC= poutput. 在三 EE=TC- TVC TS-TFC tTV - yo + 36 C. %3D d) $150
- Macmillan Learning Consider the table, which reports production information for a firm that uses a fixed amount of capital and varying amounts of labor. Use this information to answer the questions. Do not round answers. What is the marginal product of the third worker? Third worker's marginal product: units What is the average product of the second worker? Round your answer to the nearest whole number. Second worker's average product: units What are diminishing marginal returns, and with which worker do they set in for this firm? Diminishing marginal returns occur in the short run when variable inputs are added to a fixed input, and marginal product declines. In this case, diminishing returns set in with the fourth worker. O Diminishing marginal returns occur in the short run when variable inputs are added to a fixed input, and product declines. In this case diminishing Workers 1 2 3 4 Output (total product) 23 27 33 37Picture Tools 16285711986112063eel9ba0 69816244 (Read Only Sman References Mailings Review View Format Picture Shape Y Bring to Fre Picture Border Send to Bac Position Picture Effects Text Wrappr Picture Styles Arrange 2. 6 Question 2. 1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L/2 K/2 L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets per is output is $50 per unit. Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers would Widget Factory Inc employ? What is their profit rate? Question 3.Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a by drawing an average cost curve in which capital is variable but labor is fixed at the largest amount the firm can hire b by assuming the firm is minimizing total costs at all levels of output n d by finding the lowest average cost of producing any level of output, assuming all inputs can be varied How is the LRAC derived? by finding the largest amount of capital the firm can afford to use, and viewing the output capabilities of that capital amount Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C by drawing an average cost curve in which capital is variable but labor is fixed at the largest amount the firm can hire by assuming the firm is minimizing total costs at all levels of output by finding the largest amount of capital the firm can afford to use, and viewing the output capabilities of that…