1 Draw an x and y axis. Labour input on the x-axis should go from 0 to 1,000 workers. Output on the y-axis should go from 0 to 50,000 kg. a. Mark the point 500 workers and 30,000 kg. Call this point A. b. Sketch a curved production function relating output to labour input, going through A. c. In a different colour, draw a dotted ray from the origin to point A. Write what the slope of this ray shows. d. Now, on the same diagram, draw and label the impact of a one-off improvement in technology on (i) total output and (ii) the average product of labour. e. Label the new point B and write the amount of labour and the amount of output for B on the diagram.
1 Draw an x and y axis. Labour input on the x-axis should go from 0 to 1,000 workers. Output on the y-axis should go from 0 to 50,000 kg. a. Mark the point 500 workers and 30,000 kg. Call this point A. b. Sketch a curved production function relating output to labour input, going through A. c. In a different colour, draw a dotted ray from the origin to point A. Write what the slope of this ray shows. d. Now, on the same diagram, draw and label the impact of a one-off improvement in technology on (i) total output and (ii) the average product of labour. e. Label the new point B and write the amount of labour and the amount of output for B on the diagram.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
part D E
Transcribed Image Text:1 Draw an x and y axis. Labour input on the x-axis should go from 0 to 1,000 workers.
Output on the y-axis should go from 0 to 50,000 kg.
a. Mark the point 500 workers and 30,000 kg. Call this point A.
b. Sketch a curved production function relating output to labour input, going
through A.
c.
In a different colour, draw a dotted ray from the origin to point A. Write what the
slope of this ray shows.
d.
Now, on the same diagram, draw and label the impact of a one-off improvement
in technology on (i) total output and (ii) the average product of labour.
e. Label the new point B and write the amount of labour and the amount of output
for B on the diagram.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education