Answered: A firm in a competitive market should…

A firm in a competitive market should hire workers up to the point where the value of the marginal product of labor = a. the wage b. total revenue c. total cost d. total profit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Practice Question 1 If the price of the product is GH¢2.00 and cost per unit of labour is GH¢10.00, Complete the table below. Labour unit Marginal Marginal Revenue Tetal Total Average Product Total TRP-TLC MRP-MLC Marginal Labour Cost Labour Cost Product Product Revenue Product Product 10 10 20 25 30 45 40 60 50 70 60 75 70 78 80 80 00:15 1 2 3 4 56 70
When a firm experiences diminishing marginal product, what is the shape of the curve that represents the value of the marginal product of labor? Select one: a. upward sloping b. downward sloping c. vertical d. U-shaped
D D Question 1: Jerusha, a woodworker, builds coffee tables using both labor (L) and tools (capital, or K). Her production function for coffee tables is a Cobb-Douglas production function: Q = 4K0.5 L0.5. Suppose that in the short-run, Jerusha only has 16 tools (K=16). Round your answers to the nears one-hundredth place (0.01). Do not enter fractions into the boxes. Question 1 Part a: What is Jerusha's short-run production function? Q = __[0.5 Question 2 Part b: Suppose Jerusha employs 9 workers. What is her total product in the short-run?
If the marginal revenue earned by a firm due to an additional unit of worker is less than the marginal cost of hiring him, _____. a.the firm should not hire the worker b.the firm should hire the worker c.the firm should not operate in the long run d.the firm should not differentiate its products
Ford Motors 2010-2019 Explain how the company uses high-skilled and low-skilled labor? Most companies will use some mix of both, but most companies will rely more heavily on one or the other.
Solve the following Workers Output Marginal product Total costs ATC MC 0 0 1 20 2 50 3 90 4 120 5 140 6 150 7 155 Fill in the column of marginal products. What pattern do you see? How might you explain it? A worker costs $100 a day, and the firm has fixed costs of $200. Use this information to fill in the column for total cost. Fill in the column for average total cost. (Recall that ATC = TC/Q.) What pattern do you see? Now fill in the column for marginal cost. (Recall that MC = ∆TC/∆Q.) What pattern do you see? Compare the column for marginal product and the column for marginal cost. Explain the relationship. Compare the column for average total cost and the column for marginal cost. Explain the relationship.
Suppose the marginal product is maximized when the 10th worker is hired. Then the marginal cost value is minimized when a. fewer than 10 workers are hired. b. an unknown number of workers are hired. Marginal cost is independent of marginal product. C. more than 10 workers are hired. Od. 10 workers are hired.
Quantity of Labor (workers) Total Product (units per hour) 0 12 34 56 0 259 151817 The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the worker because A) 4th; the average product of labor is also increasing B) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker C) 3rd; the average product of labor is also increasing D) 5th; output declines with the 6th worker E) 5th; output is maximized
For a profit-maximizing competitive firm, the value of marginal product curve is A. always rising. B. falling only when marginal product is rising. C. the labor supply curve. D. the labor demand curve.
WHICH OF THE FOLLOWING CONCEPTS OF PROFIT TAKES INTO ACCOUNT THE OPPORTUNITY COST OF CAPITAL A. MANAGERIAL PROFIT B. FINACIAL PROFIT C. ECONOMIC PROFIT D. ACCOUNTING PROFIT
Note: The answer should be typed.