A profit-maximizing firm operates in purely competitive product and resource markets, with theresource and production schedules shown in the table.TotalWorkers Production8440741063705320426031802110155The product price is $10 per unit and the cost per worker is $475. How many workers will thefirm employ?Multiple ChoiceO675

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Answered: A profit-maximizing firm operates in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given the hourly costs: Machine-P60; Worker-P50 Each input has to work in integer hour Hours Used 1 2 3 45 6 98 7 8 Marginal Product Machine 15 18 21 18 15 12 9 3 Worker 8 10 10 10 8 8 6 6 4 42 2 If the daily budget for the 2 inputs is P570, what is the optimal mix of machine-hours and worker-hours, respectively? [Select] What is the total product for this optimal mix of machine- hr & worker-hr with daily budget of P570 ? [Select] After how many hours of use does diminishing marginal return (product) set in for the machine?
Employment 0 1 2 3 4 5 6 Total Product 0 12 22 30 36 40 42 Multiple Choice Refer to the given table. If the firm is hiring workers under purely competitive conditions at a wage rate of $35, it will employ 5 workers. 3 workers. 4 workers. Product Price $6 6 6 6 6 6 6 2 workers.
Question 2a (i) A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000. The cost of capital is $3,000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company's cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? (YES/NO) Choose. Explain. Choose.
Check my wor Units of Labor Total Output per Price of Good Day 10 $14 14 13 4 19 12 23 11 27 10 es 7 31 A firm's labor input, total output of labor, and product price schedules are given in the table. Labor is the only variable input. What is the marginal revenue product of the sixth worker? Multiple Choice $10 $60 $4 $17
22
The accompanying table describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and each worker is paid $10 per hour Calls Per Hour 1 2 6 16 O 22 24 What is the total cost of making 2 calls an hour? Multiple Choice O $45 $40 $20 Number of Telephones 1 1 1 1 1 1 $10 Number of Workers Per Hour 2 4 6 8 10 12
Show in schedule form and graphically the labor demand curve of this firm.
Units of Total Average Marginal Product Product Product Labor 1 100 2 125 3 300 4 20 5 290 In the table above, diminishing returns Multiple Choice O begin with the first unit of labor. begin with the third unit of labor. O begin with the fourth unit of labor. begin with the fifth unit of labor. do not occur because output is positive for all levels of labor usage. O
If there are diminishing returns to labor, then as more workers are hired the total amount produced by all of the workers will decrease. True False
A grave digging firm hires 2 daily workers (L) at a wage (w) of $20, and has 4 units of capital (K) at a rental rate (r) of $25. If the grave digging company is minimizing costs, which of the following production functions would result in this hiring mix? a. q = 32(L +2K) O b.q =2LªK? O c. q = 4L1/10k1/4 O d. q= 20L1/4K?/4
The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant. Units of Resource Total Product 1 24 2 42 3 54 4 64 5 72 If the firm's product sells for a constant $2 and the price of the resource is a constant $16, the firm will employ how many units of the resource? Multiple Choice 3 4 2 5
Exhibit 27-5 Units of Laber 0 1 2 3 4 5 Quantity of Output 2) two units 3) one unit 1) four units 4) five units 0 100 5) three units 189 250 310 330 Marginal Revenue $6 6 6 Refer to Exhibit 27-5. Assume that the firm is a factor price taker and that the price of a unit of labor is constant at $480. The firm should hire of labor. 6 6 6 treate Your Boomd

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