51. A firm operating in competitive input and output markets purchases newtechnology, which shifts the total product schedule from A to B, as shown in the databelow. At the market wage rate of $30 and product price of $5 this firm will:Schedule ANumber of TotalProduct304048545963Workers123456Schedule BNumber ofWorkers123456TotalProduct354757657176A. Hire the same number of laborers in both situationsB. Increase the number of laborers hired from 4 to 6C. Decrease the number of laborers hired from 4 to 3D. Increase the number of laborers hired from 4 to 5

Introduction The marginal product of labor (MPL) is a measure of the extra output that is produced…

Answered: 51. A firm operating in competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Frank's Fajitas can produce 45 fajitas per hour with five workers and one grill. One more worker will increase output by 6 fajitas per hour. If the wage rate is $9 per hour, the marginal cost of increasing fajita production to 51 fajitas per hour at Frank's Fajitas is: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. b C Question 10 d $1.50. $3.00. $4.50. $9.00. Saved
A perfectly competitive, profit-maximizing firm gets $50 per unit it sells and pays its workers $10 per hour. When this firm hires an additional worker at this production point, we know that unit of labor provides units of output. (Enter only a number and decimal point as needed in the blank.)
An economic downturn has caused the labor demand to decrease from DO to D1. In the short-run what will be the new wage and level of employment? Wage Rate 40 35 30 ($) 25 20 20 15 10 DO 5 D1 0 5 10 15 20 25 30 35 40 Quantity of Labor (Q)
(2) Suppose a firm employs labor as its only variable input. All workers are paid P100 per day. Output per day and variable cost are shown in Table A below. Complete the table, showing labor, average variable cost, and marginal cost for the first eight units of output. Draw a graph showing average and marginal cost. Table A a 1 2 3 4 5 6 7 8 VC 100 400 600 800 1200 1600 2400 3200 L AVC MC
Question 04: Suppose that labor is the only input used by a perfectly competitive firm. To the right is the firm's daily 'production function'. [ See below for the table] (a) Calculate the marginal product, MP, for each additional worker. (b) Each unit of output sells for $10. Calculate the marginal revenue product of each worker. Quantity of labor 0 1 2 3 4 5 6 7 Total Product 0 8 15 21 26 30 33 3.5 MP MRP @if MR = $10 MRP @ if MR = $12 A) The MP of the 2nd worker is 8 widgets and the MRP of the 4th worker is $60. B) The MP of the 2nd worker is 7 widgets and the MRP of the 4th worker is $40. C) The MP of the 2nd worker is 7 widgets and the MRP of the 4th worker is $50. D) The MP of the 2nd worker is 6 widgets and the MRP of the 4th worker is $60.
Graph the demand for labor as a function of the wage using this data. What happens to the number of workers when wage goes up? How many workers will be hired and how many cookies made at a wage of 40.50? Please give me the equations so I can understand how to create this graph.
Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
2. Consider a price-taking firm with total fixed cost of $80 and a market-determined price of $5 per unit for its output. The wage rate is $8 per unit of labor, the only variable input. Using the information provided, complete the table provided below. (7 pts) Marginal Total Revenue Variable Product Units of Labor Marginal Total Output Product Revenue Revenue Marginal Total Marginal Cost Cost Profit Cost 5 15 2 3 30 50 5 6 65 77 7 86 94 8 98 |10 96
Answer this question based on the information in the table:If hiring the 7th worker increases total product by 5 units, and the price of each unit is $2, which of the following is true? Number of Workers Total Cost0 501 1102 1603 2004 2405 2506 2607 2808 3109 35010 400 The firm should not hire the 7th worker as MR<MC. Marginal revenue equals $2. The firm should hire the 7th worker as MR>MC. The firm should not hire the 7th worker as MR<TC.
Units of Resource Total Product 1 24 2 42 3 54 4 64 5 72 Help Save & Exit Sub The table shows a total-product schedule for a resource. Assume that the quantities of other resources the firm employ remain constant. If the firm can sell 24 units of output at a price of $1.00 and 42 units of output at a price of $0.80, the marginal revenue product of the second unit of the resource is Multiple Choice $5.40 $7.00. $9.60. $12.20
I7

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