Homework Help is Here – Start Your Trial Now!
Business
Economics
A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow. Instruction: Enter your responses for Average Product of Capital (APK) and Average Product of Labor (APL) rounded to two decimal places. All other responses should be entered as whole numbers. If you are entering a negative number, use a negative sign (-) where appropriate. (1) Capital 0 1 2 3 4 5 6 7 8 9 10 11 (2) Labor 20 20 20 20 20 20 20 20 20 20 20 20 (3) Output 0 50 150 300 400 450 475 475 450 400 300 150 (4) Marginal Product of Capital, MPK (5) Average Product of Capital, APK (6) Average Product of Labor, APL (7) Value Marginal Product of Capital, VMPK

A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow. Instruction: Enter your responses for Average Product of Capital (APK) and Average Product of Labor (APL) rounded to two decimal places. All other responses should be entered as whole numbers. If you are entering a negative number, use a negative sign (-) where appropriate. (1) Capital 0 1 2 3 4 5 6 7 8 9 10 11 (2) Labor 20 20 20 20 20 20 20 20 20 20 20 20 (3) Output 0 50 150 300 400 450 475 475 450 400 300 150 (4) Marginal Product of Capital, MPK (5) Average Product of Capital, APK (6) Average Product of Labor, APL (7) Value Marginal Product of Capital, VMPK

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

Note:-

Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.

Answer completely and accurate answer.

Rest assured, you will receive an upvote if the answer is accurate.

 

 

A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow. Instruction: Enter your responses for Average Product of Capital (APK) and Average Product of Labor (APL) rounded to two decimal places. All other responses should be entered as whole numbers. If you are entering a negative number, use a negative sign (-) where appropriate. (1) Capital 0 1 2 3 4 5 6 7 8 9 10 11 (2) Labor 20 20 20 20 20 20 20 20 20 20 20 20 (3) Output 0 50 150 300 400 450 475 475 450 400 300 150 (4) Marginal Product of Capital, MPK (5) (6) Average Product Average Product of Capital, APK of Labor, APL (7) Value Marginal Product of Capital, VMPK
Transcribed Image Text:A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow. Instruction: Enter your responses for Average Product of Capital (APK) and Average Product of Labor (APL) rounded to two decimal places. All other responses should be entered as whole numbers. If you are entering a negative number, use a negative sign (-) where appropriate. (1) Capital 0 1 2 3 4 5 6 7 8 9 10 11 (2) Labor 20 20 20 20 20 20 20 20 20 20 20 20 (3) Output 0 50 150 300 400 450 475 475 450 400 300 150 (4) Marginal Product of Capital, MPK (5) (6) Average Product Average Product of Capital, APK of Labor, APL (7) Value Marginal Product of Capital, VMPK
b. What are the firm's fixed costs? c. What is the variable cost of producing 475 units of output? d. How many units of the variable input should be used to maximize profits? e. What are the maximum profits this firm can earn? f. Over what range of the variable input usage do increasing marginal returns exist? From to g. Over what range of the variable input usage do decreasing marginal returns exist? From to h. Over what range of input usage do negative marignal returns exist? From to
Transcribed Image Text:b. What are the firm's fixed costs? c. What is the variable cost of producing 475 units of output? d. How many units of the variable input should be used to maximize profits? e. What are the maximum profits this firm can earn? f. Over what range of the variable input usage do increasing marginal returns exist? From to g. Over what range of the variable input usage do decreasing marginal returns exist? From to h. Over what range of input usage do negative marignal returns exist? From to
Expert Solution
steps

Step by step

Solved in 7 steps with 16 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Skilled Labors
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
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)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
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-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS