5. What is the difference between the Marginal Product of Labor (MPL) and the Marginal Revenue Product of Labor (MRPL)? (A) MPL measures the change an additional worker has on profit while MRPL measures thechange and additional worker has on revenue (B) MPL is in monetary units while MRPL is in units of output (C) They are identical (D) MPL is in units of output while MRPL is in monetary units

5. What is the difference between the Marginal Product of Labor (MPL) and the Marginal Revenue Product of Labor (MRPL)? (A) MPL measures the change an additional worker has on profit while MRPL measures thechange and additional worker has on revenue (B) MPL is in monetary units while MRPL is in units of output (C) They are identical (D) MPL is in units of output while MRPL is in monetary units

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

11 Refer to Table 10.1. The marginal revenue product of the Table 10.1 a) b) C) d) Total Labor Units (employees) 0 1 2 fifth fourth third second 345 Total Product (T-shirts per day) 0 20 50 75 95 110 worker is $150. Marginal Product of Price per Labor (per day) T-shirt -- 20 30 25 20 15 - $5 5 сл слол сл 5 5 5
7 The Paunch Burger restaurant chain currently produces 250,000 units of output by using 2,400 units of capital and 520 units of labor. Paunch Burger’s marginal rate of technical substitution (MRTS) of labor for capital is 3.5. If Paunch Burger’s regional manager wants to produce the same amount of output but increase the company’s use of capital by 175 units, how many units of capital will Paunch Burger now need to use?
PLCY 310 Problem Set 2 SSII Extra credit (5 points) Use these graphs to answer the following: weekly $'s consumption wage 25 20 wage- 25 wage- 20 5 10 15 20 25 30 35 40 45 50 55 60 week hrs of leisure B labor supply curve SE WE 5 10 15 20 25 30 35 40 45 50 55 60 week hrs of labor a) Analyze what is happening on the first graph (use slide 9 Chapter 9 as guide), go over the price change, the income and substitution effects, and the total effect. (3 points) b) Explain the bottom graph, what does it tell us? (1 point) c) Draw a leisure demand curve with wages on the y-axis and weekly leisure hours on the x-axis using the information in this graph. (1 point)
2. Given the following labor data of Meow Company. (1) Number of workers, (2) Number of cakes baked, Y (3) Marginal product of labor, MPN (4) Marginal revenue product of labor, MRPN (when P = RM40) 1 33 55 60 4 77 5 85 6. 89 7 110 a) Calculate and fill in the yellow colored blanks in the above table. (8 marks) b) What can you conclude from your answer? (2 marks)
Marginal revenue product of labor 56 48 $36 40 36 28 20 11 0 O 12 cake pops 36 cake pops $144 1 2 3 4 5 6 The Figure shows the marginal revenue product (also called the value of the marginal product) for Cora's Confections, a producer of hand-made cake pops. If Cora can sell her cake pops at $3 each, what is the marginal product of the 4th worker? 7 Marginal revenue product of labor Quantity of labor
QUESTION 3 Two inputs, labour (L) and capital (K) are used to produce a given output. The Marginal Product of L is equal to K: the Marginal Product of K is equal to L The hourly wage is w = 1; the interest rate is r= 2. Which of the following mixes of inputs could be cost minimizing for some level of production? O a. (K-0, L=100) Ob.(K=100, L-200) OC (K-200, L=100) O d. (K-1, L=3) O e (K=0, L-3)
A $50,000, 80-day Province of Ontario T-bill was issued 34 days ago. What will the T-bill sell at today, in order to yield the purchaser a simple interest rate of 5.50% p.a.? $0.00 Round to the nearest cent
23) The marginal products of the first, second, and third workers are 50, 34, and 22, respectively. If four workers can produce 116 units of output, then the marginal product of the fourth worker is A) 10 B) 12 D) 116 Answer: A Diff: 2 Topic: The Production Process Skill: Analytic C) 22
3. Theo employs labor at a competitive wage (W) of $3 per unit, and he employs capitalat a competitive rental rate (R) of $6 per unit.a. State the cost-minimizing rule. You must provide both a written statement of it, and state it as anequation.b. At Theo’s current combination of labor and capital, the marginal product of labor (MPL) is twiceas large as the marginal product of capital (MPK). Is Theo currently employing the optimal ratio oflabor and capital? If not, how should he adjust his hiring of labor and/or capital? Explain.
Question 23 of 30 The marginal product of a factor shows how much an additional unit of a factor adds to unit costs. dollar revenue. the level of production. O profitability. The marginal revenue product of a factor shows how much an additional unit of a factor adds to O profitability. the level of production. unit costs. dollar revenue. 46°F a
None
29. Consider a firm minimising the cost of production, given factor prices. For this firm, the following is observed: MPL MPK where w is the wage rate, r is the rental rate of capital, MPL is the marginal product of labour and MPx is the marginal product of capital. To minimise the cost of production, what should this firm do? a) Pay higher wages. c) Use more labour and less capital. b) Pay lower rental rate of capital. d) Use less labour and more capital.