1. Computing labor productivity and its relationship to the demand for laborSizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a competitive market. The following table presents thecompany's production function:Labor(Number of workers)0OUTPUT (Grills)400360Use the blue points (circle symbol) to plot the production function for Sizzler's on the following graph.24020016012080400102345Output(Grills)09518526032035513LABOR (Number of workers)Production Function Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circlesymbol).Note: Remember to plot each point halfway between two integers. For example, when the number of workers increases from 0 to 1, the MPL of thefirst worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect thepoints.1008708MPL (Grils per worker)508308810DDWAGE (Dolars per worker)The following graph shows the demand for labor for three different prices per grill:200180160140408DD00ZONLABOR (Number of workers)MПD20U6NDC3LABOR (Number of workers)MPLO DO@Given the company's marginal product of labor curve shown on the second graph, lineprice of a grill is $1.00, and line shows Sizzler's demand for labor when the price of a grill is $1.50.on this graph shows Sizzler's demand for labor when the

Wages and demand for labor have a negative relationship. When wages rise, DL(demand for labor) falls. This is because the rise in W(wages) will increase the cost of firms to employ laborers. So, they decrease their demand to reduce the cost. When the W(wages) of labor fall, the DL( demand for labor )rises .(a)The production function graph is shown below ; At a point, L(labor), and Y(output) are 0. Similarly, the output is 95,185,260,320, and 355 when laborers are 1,2,3,4, and 5 respectively. (b)The change in Y(output )due to change in L(labor) is measured by MPL(marginal product of labor). Formula of MPL=Change in outputchange in labor By using the above formula , MPL is calculated in the following table; Output Labor MPL 0 0 0 95 1 95 185 2 90 260 3 75 320 4 60 355 5 35Step 4 (C)The VMPL (value of marginal product ) is the product of MPL and P(price). Firm gives wages equal to VMPL in equilibrium. Let's try to calculate VMPL when P(prices )are $1 and $1.5 . Labor MPL VMPL at P=$1 VMPL at P=$1.5 0 0 0 0 1 95 95 142.5 2 90 90 135 3 75 75 112.5 4 60 60 90 5 35 35 52.5 VMPL shows the DL(demand for labor) by firms. It is clear from the above schedule that when the P( price) is equal to 1, firms demand 1,2,3,4, and 5 units of L(labor) at the wage rate of 95,90,75,60, and 35 respectively. It is shown by line MSimilarly, at a P( price) equal to 1.5, firms demanded 1,2,3,4 and 5 units of labor at the wage rate of 142.5,135,112.5,90 and 52.5 respectively. It is shown by line N. Hence, line M is the DL( demand curve of labor) when the price is $1 and line N is the DL(demand curve of labor) when the P( price) is $1.5. (a)The graph is explained in part B(b)The graph is explained in part C©Line M shows the DL(demand curve of labor) when the P(price) is $1 and line N shows the DL(demand curve of labor) when the P(price) is $1.5.

Business

Economics

1. Computing labor productivity and its relationship to the demand for labor Sizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a competitive market. The following table presents the company's production function: Labor (Number of workers) 0 OUTPUT (Grills) 400 360 320 280 Use the blue points (circle symbol) to plot the production function for Sizzler's on the following graph. 240 200 160 120 80 40 1 2 0 3 4 5 Output (Grills) 0 95 185 260 320 355 3 LABOR (Number of workers) Production Function

1. Computing labor productivity and its relationship to the demand for labor Sizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a competitive market. The following table presents the company's production function: Labor (Number of workers) 0 OUTPUT (Grills) 400 360 320 280 Use the blue points (circle symbol) to plot the production function for Sizzler's on the following graph. 240 200 160 120 80 40 1 2 0 3 4 5 Output (Grills) 0 95 185 260 320 355 3 LABOR (Number of workers) Production Function

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

100%

1. Computing labor productivity and its relationship to the demand for labor
Sizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a competitive market. The following table presents the
company's production function:
Labor
(Number of workers)
0
OUTPUT (Grills)
400
360
Use the blue points (circle symbol) to plot the production function for Sizzler's on the following graph.
240
200
160
120
80
40
0
1
0
2
3
4
5
Output
(Grills)
0
95
185
260
320
355
1
3
LABOR (Number of workers)
Production Function

Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circle
symbol).
Note: Remember to plot each point halfway between two integers. For example, when the number of workers increases from 0 to 1, the MPL of the
first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the
points.
100
8
70
8
MPL (Grils per worker)
50
8
30
8
8
10
D
D
WAGE (Dolars per worker)
The following graph shows the demand for labor for three different prices per grill:
200
180
160
140
40
8
D
D
00
ZO
N
LABOR (Number of workers)
M
П
D
2
0
U
6
N
D
C
3
LABOR (Number of workers)
MPL
O DO
@
Given the company's marginal product of labor curve shown on the second graph, line
price of a grill is $1.00, and line shows Sizzler's demand for labor when the price of a grill is $1.50.
on this graph shows Sizzler's demand for labor when the

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3. The Chipper Cookie Company's output is given by the Cobb-Douglas Production function P = 120L0.7 K0.3, where P is the number of units produced when Lis the amount spent on labor and K is the amount spent on capital. a. What is the production if L = 600 and K = 600? b. Find the marginal productivities. c. Evaluate the marginal productivities with L= 600 and K = 600. d. Interpret the meanings of the marginal productivities found in part c. e. If their budget is $1200 then there is a constraint L+ K = 1200. Use Lagrange multipliers (^) to find the values of L and K that will maximize production and find the maximum production f. Find and interpret 2 for this problem. only need part e and f!
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Consider this production function. Study hours 2. 4 10 11 12 14 15 or more 13 Grade 20 33 42 50 57 63 69 73 78 81 84 86 88 89 90 1007 90 - 80 70 60 S0 40 30 20 10 Hours of study per day Select one or more: a. The average product of labour is falling as hours of study increase. O b. The marginal product of labour is constant as hours of study increase. O c. The marginal product of labour is rising as hours of study increase. U d. The marginal product of labour is zero beyond 15 hours. Final grade 9-
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