How much is the marginal revenue of the product of labor if the price of the product (P) is $ 12 and the marginal product of labor (MPL) is 8? Response option group a) $ 12 b) $ 96 c) $ 450 d) $ 384
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How much is the marginal revenue of the product of labor if the price of the product (P) is $ 12 and the marginal product of labor (MPL) is 8?
Response option group
a) $ 12
b) $ 96
c) $ 450
d) $ 384
Step by step
Solved in 2 steps
- (A) With P = 20, W = 25 and TFC = 500: Labor Output (Q) (L) 5 10 25 35 50 60 10 25 60 70 80 90 Marginal Physical Product of AVC=VC/Q ATC=TC/Q Labour (MPPL) 2 3 4 2 2 1 Average Physical Cost Product of (TC) (VC) Labour (APPL) 2 2.5 2.4 2 1.6 1.5 MPPL = Change in Q / Change in L APPL=Q/L TC = TFC + VC VC=W* L MC = Change in TC / Change in Q Total Variable Marginal Average Cost Variable 625 750 1125 1835 1750 2000 125 250 625 875 1250 1500 Cost (MC) 15 10 6 10 15 30 Average Total Cost Cost (AVC) (ATC) 12.50 10.00 10.42 12.50 15.63 16.62 62.5 30.00 18.75 26.21 21.88 22.22 Based on this table, answer this: 1. How much output will this firm produce? If the price of output increases to $30, how does your answer change? 2. If the productivity of labor increases by 10% (all else equal), how much more labor will the firm hire? 3. Below what price will this firm decide to produce zero units of output? (i.e. shut down)C&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one employee (for a total of four employees). The processing time for each activity is given as follows: Greet customer Take order Process order Deliver order Activity Processing time per customer 2 seconds 30 seconds 60 seconds 5 seconds Assume demand is unlimited. Each employee is paid $7.50 per hour. If one additional employee is added to the bottleneck activity, what will be the cost of direct labor in S per customer?A perfect competitor charges a price of $30. The first worker he would hire would have a marginal physical product of 20, the second worker he would hire would have a marginal physical product of 18, the third worker would have a marginal physical product of 16, and the fourth worker would have a marginal physical product of 14. (a) How many workers would he hire if the wage rate were $540? worker(s) hired How much would his wage bill be? $ wage bill (b) How many workers would he hire if the wage rate were $470? worker(s) hired How much would his wage bill come to? $ wage bill.
- Emco Company has an assembly line of fixed size A. Total hourly output is a function of the number of workers (crew size) as shown in the following schedule: Crew Size Total Output (No. of Workers) (No. of Units) 0 0 1 10 2 35 3 50 4 55 5 59 6 60 7 60 8 58 (a) Determine the marginal productivity of labor. (b) If the output is priced at $10/unit and the worker's wage is $40/hour, what is the optimal crew size?Problem 1 LK² and faces a wage A soap manufacturer has the production function q = rate of $45 and rental rate of capital of $90. (a) Find the cost-minimizing ratio of capital to labor. (This is also called the output expansion path). (b) Suppose the firm plans to produce q=1,000. Determine the cost- minimizing amount of labor and capital. (c) How much will it cost to produce q=1,000 (long run)? Suppose the firm decides to increase its output to q = 1331, but is unable to increase its quantity of capital from the amount in b. How much labor will the firm need to employ and what will be the cost of producing q = 1331? (d) (e) If the firm continues to produce q = 1331 over a long period of time, how will it alter its capital and labor from part d.? What will it cost to produce q = 1331 in the long run? On a graph, draw the two isoquants from above and the isocost lines corresponding to the LR and SR costs (there should be three). Identify the optimal L and K for each part on the graph.…Which of the following factors will cause the demand curve for labor to shift to the right? (a) the demand for the product by labor declines. (b) the prices of substitute inputs fall. (c) the productivity of labor increases. (d) the wage rate declines. (e) None of the above.
- Show full work for part d) e) & f)A snowboard company hires 10 skilled employees who are paid a weekly wage of $1000. The cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company's cost will be $13500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. a) Should the company produce and sell it. YES/ NO b) Explain c) What core principles are considered in the snowboard company's decisionmaking? i) Scarcity, Chioce and Opportunity Cost ii) Cost benifit analysis iii) Incentive principle iv) Diminishing returns Select one: 1. All principles are considered 2. (i) only 3. (i) and (ii) only 4. (i), (ii) and (iii) only 5. (ii) and (iii) only 6. (i) and (iv) only 7. (ii) and (iv) only 8. (iii) and (iv) only 9. (ii), (iii) and (iv)C&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one employee (for a total of four employees). The processing time for each activity is given as follows: Greet customer Take order Process order Deliver order Activity Processing time per customer 2 seconds 30 seconds 60 seconds 5 seconds Assume demand is unlimited. If one additional employee is added to the bottleneck activity, what will be the percentage change in process capacity?
- if the employee sold house for $340000,what is the total recruiting expense?A competitive, profit-maximizing firm uses two inputs labor (L) and capital (K). Its production function is given by f (L, K) = 3L2 + 7K 2. Its output sells for $4 per unit. The price of labor is $6 per hour. The price of output rises to $8 per unit but factor prices do not change. (a) It will increase its hiring of labor by 4 hours. (b) It will increase its hiring of labor by 2 hours. (c) We need to know the price of capital to be able to determine the change in demand for labor. (d) It will increase its hiring of labor by 3 hours. (e) None of the above.y= f(x1,x2)=x1ax2b If a=b=0.5 , the price of factor 1 is 12, and the price of factor 2 is 3, find the cost minimizing input combinations and the total cost of producing 40 units of output. Redo part (1), this time by first deriving the firm’s conditional factor demand functions and the cost function.
