b) Explain the circular flow for both Input Market (Factor Market) and Output Market (Product Market) and support your answers with the relevant flow chart
Q: Jerry's snowboards Total Labor Product (workers (boards Marginal Product of Labor ТР Average Product…
A: "Average product indicates the number of units produced per worker.""Marginal product of an input…
Q: A production process uses two inputs, labor and capital. If the marginal product of labor per dollar…
A: Marginal productivity refers to the additional output produced by using one more unit of input while…
Q: Microeconomics - Production Function A firm produces shoes using labor (L) and machinery (K) as…
A: Marginal product of labor refers to the additional amount of labor required to increase output by…
Q: Question 9 Pepsi uses two inputs to produce soda: bottling machines K and workers L. The machine…
A: In economics, production is the most common way of combining different inputs, both material and…
Q: ECONOMICS for Today. BUY Economics For Today ☐ 10th Edition ISBN: 9781337613040 Author: Tucker…
A: The objective of the question is to calculate the marginal product of the second worker. The…
Q: Labor Output (workers per week) (units per week) 0 0 1 20 2 50 3 70 4 85 5 95 6 100 Use the above…
A: Given:- Price=$500TFC=$600Unit produce=95 To calculate:- ATC at 95 unit=?MC at 90 unit=? Please find…
Q: Input Market Question Give an example of how to value cost of purchases in distorted input market…
A: Factor market" is the representation economists utilize for all of the resources that businesses…
Q: What is relationship between MP and AP? Explain why MP first rises, then declines and ultimately…
A: The given table has been completed and the corresponding graphs of (MP and AP) have also been…
Q: 5) The slope of the line from the origin to a given point on the total product of labor curve equals…
A:
Q: 1. Marginal product of capital and labor in a CRS Cobb-Douglas production function 2. Second…
A: The production function depicts the technical association between the quantities of output (Q) that…
Q: Use a graph of labor input and its marginal product to argue that in the specific factors model(i.e.…
A: The Specific Factors Model is an economic model that examines how changes in the availability of a…
Q: Each extra worker produces an extra unit of output up to 6 workers. After 6, no additional output is…
A: Economics is a social science that studies how individuals, businesses, governments, and societies…
Q: Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the…
A: Calculation of MPL: Labor Output (TP) MPL 0 0 1 100 100 2 195 95 3 275 80 4 340 65…
Q: The ________ marginal product of labor occurs because the amount of fixed inputs per labor declines…
A: In the short run, the capital is fixed and only labor is the varaiable input, and there are returns…
Q: 93) Explain the difference between the short run and the long run as it relates to the firm's…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Production of taxi rides (15%) GlobalTaxi runs taxi services around the globe. GlobalTaxi uses two…
A: Hi, thanks for the question. As per the guideline we are allowed to attempt the first question. If…
Q: Use the information in the table to answer the two questions that follow about Monster's Ink, a…
A: Marginal product refers to the change in output or production that is achieved by adding one…
Q: (a) Explain the substitution and output effect of a decrease in price of labor from the attached…
A: A profit-maximizing firm hires labor up to a point where the marginal revenue product of the labor…
Q: The quantity of two products the market is willing tỏ purchase for a given level of expenditure and…
A:
Q: E. Majority of farm households use credit to purchase modern inputs
A: Farm input use is defined as all those resources that we are using to undertake agricultural…
Q: A machine requires two hours to make a unit of Product X and six hours to make a unit of Product Y.…
A: The method of producing products is described by the production function. Equations can also include…
Q: Which of the following would be a reasonable explanation for the law of diminishing marginal…
A: An economic principle that asserts that as extra units of a variable input are added to a fixed…
Q: Hi- please answer both A and B A construction company has two types of employees: skilled and…
A: Two Types of employee• Skilled employee• unskilled employeeSkilled Employee build 1 yard - in 1 hour…
Q: Suppose that Maria is starting a food ordering and delivery company. Customers order meals online.…
A: Production functions shows the relationship between inputs and outputs. Production functions shows…
Q: Which of the following statements is (are) correct? (x) Economists distinguish between short run…
A: Short run and Long run are related to the time period of a business or firm.
Q: Suppose a firm is using 1500 units of labour and 20 units of capital to produce 100 tonnes of…
A: The expenses that are incurred for carrying out day-to-day transactions of the business are known as…
Q: The degree of convexity of an isoquant determines the degree of substitutability of factors of…
A: Answer: An isoquant shows the locus of two factors that yield the same level of output on an…
Q: 3. On Monday, a coffee shop has one worker and one coffee machine. The manager hires a second member…
A: An equation that describes the connection between inputs (such labor and capital) and output is…
Q: Using the information from the isoquant/isocost diagram to the right and assuming that PL = PK = $2,…
A: An isoquant shows the different combinations of factors of production that can be used to produce a…
Q: Quentity Selected Answer: Answers Consider the graph shown here. Implementation of advanced and…
A: The producers always look to reduce the cost of production. Advanced technologies help the producer…
Q: onsider the pharmaceutical company Mylan that produces epinephrine injection devices called EpiPens.…
A: In economics, a market refers to a physical or virtual space where buyers and sellers interact to…
Q: Average Product of Labor Marginal Product of Labor Average Variable Cost Average Fixed Cost Average…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The profit maximizing stage of produstion: a Begins when Average Physical Product is equal to…
A: Profit is generally maximized in the second stage of production. In stage one, Marginal product is…
Q: Which of the elements of this scenario represent a flow from a household to a firm? This could be a…
A: Answer: Sharon's labor The $175 Paolo spends to purchase necklace from Classy's Jewelry…
Q: Consider the following CES production function. 1 1 - ₁ (= (2-) = + (1 - 0) (-) *) * (K)* Y₁ = A α…
A: The production function determines all the input bundles that produce the same output level.The…
Q: According to microeconomic theory, an input factor may be: a. Fixed in the short run, but will…
A: The time horizon that is being considered determines how input factors are classified in…
Q: urplus labor
A: The Lewis version, named after the economist Sir Arthur Lewis who developed it in the 1950s, is a…
Q: Relationship between the Quantity of inputs used to make a good and the quantity of output of that…
A: The word production means to produce something and it is related to the various combinations of…
Q: In our paper airplane company, some inputs were fixed and some were variable. Match the input to…
A: When talking about fixed or variable inputs it can be said that any input whose quantity changes…
Q: We know there is a link between productivity and costs. For example, recall the link between the…
A: In an economist's terms, when we talk about productivity, then we are talking about the marginal…
Q: Market Basket 1990 (Base Year) 2010 2011 Product Quantity Price Price Price A B C D 8 12 21 16 If…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: TOTAL AND MARGINAL PRODUCT Total Product [Output] 70 60 50 40 30 20 10 0 Marginal Product 20 10 0…
A: Here we have to calculate the marginal product of labor and slope of the production Function:The…
Q: 3. The circular flow model The following diagram presents a circular flow model of a simple economy.…
A: Since you have asked multiple subpart question, we will solve first three parts for you. If you want…
Q: Quantity of Variable Input Marginal Product of Variable Input Average Product of Variable Input…
A: Formula to find total output: Total output = Average product of variable input * Quantity of…
Q: TOTAL AND MARGINAL PRODUCT tal Product [Output] 70 60 50 40 30 20 10 0 Marginal Product 20 10 0 -10…
A: Total product (TP) and marginal product (MP) are concepts used in economics to analyze the…
Step by step
Solved in 2 steps
- FIGURE 2-13 Product Markets Households Firms Factor Markets Refer to Figure 2-13. Which of the followings statements is most accurate about payments for goods and services? They are received by households in the factor market. They are received by firms in the factor market. They flow in a clockwise direction. They flow in a counterclockwise direction.The table below shows the prices of the inputs and outputs for the production of a road bike. Raw naterials Manuf acturing Construction Sale by the retailer The retailer sells the bike for $500 Bike mechanic puts everything together Rubber for one tire ($20) Tire maker sells tires for $30 each Bike frame and components: and Aluminum for the fr ame ($80) Frame maker sells them for sells the bike for $350 la total of $250 Other component materials ($70) Instructions: Round your answers to the nearest dollar. a. What value is added by the supplier of the raw materials? $ b. What value is added by the tire maker? 10 c. What value is added by the maker of the frame and components? d. What value is added by the bike mechanic? 2$ e. What value is added by the bike store? $ f. What is the total contribution of the bike to GDP? %24 %24 %242. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when firms v purchase factors v in factor markets. Suppose Teresa earns $875 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Sam $350 per week to wait tables. Sam uses $200 to purchase legal service from Rowan and Martin Associates.
- 2. Define marginal physical product of labor (MPP) and marginal cost of product (MC). How are these two related? Why is MC called the mirror image of MPP? Explain ( type answer and descripe with grph)Complete the following table: Quantity Marginal Product of Average Product of Of Variable Total Variable Variable Input Output Input Input 50 30 90 4 96 24which of the following best describes marginal product?A.)Left over output- the loaves a bakery makes but does not sell that goes unused. B.) The total number of loaves a bakery can create with 5 workers and a fixed amount of capital. C.) The loaves made by a bakery using a substandard quality flour that ultimately harms business profits. D.) When the number of bakery staff increases from 2 to 3 bakers, 5 additional loaves are made.
- The following table depicts the number of grapes that can be picked in an hour with varying amounts of labor: Number of pickers (per hour) 1 2 3 4 5 6 7 8Output of grapes (in flats) 10 28 43 54 61 64 65 61Calculate marginal physical product (MPP) and then graph the total product (output) and MPP curves.Firms Markets for Goods and Services Markets for Factors of Production Based on this model, households earn income when Event Households purchase Suppose Maria earns $525 per week working as a programmer for PC Pros. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Kevin $300 per week to wash cars. Kevin uses $175 to purchase software from PC Pros. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Kevin spends $175 to purchase software from PC Pros. Maria earns $525 per week working for PC Pros. Kevin earns $300 per week working for Spotless Car Wash. Factor Market in factor markets. Product Market O2. Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor (the number of workers), and H is human capital (the number of college degrees among the workers). The production function Y = K2/6 L3/6 H1/6 a) Derive an expression for the marginal product of labor. How does an increase in the amount of human capital affect the marginal product of labor? (Hint: The marginal product of labor MPL is found by differentiating the production function (Y) with respect to labor (L)) b) Derive an expression for the marginal product of capital. How does an increase in the amount of human capital affect the marginal product of capital? (Hint: The marginal product of capital MPK is found by differentiating the production function (Y) with respect to capital (K)).
- We can describe inputs as either fixed or variable. Thinking about a company that assembles cars, which of the following would be an example of a fixed input that could not be changed in the short run? Group of answer choices A)The robots that help assemble the cars. B)The building where the assembly takes place. C)The electricity required to support the assembly activity. D)The employees that work for the company.4. Graphically show the interrelationship between Total Product and Marginal Product.34. An iso-quant gives: S Combinations of output that can be produced using different levels of inputs 0. Combinations of inputs that can produce a constant level of output C. Combination of out puts that can be produced with a given level of upuis. d. None of the above is correct