For the following output data, assume that the amounts of all nonlabour resources are fixed.Number ofWorkersOutput01402753105413051506160Diminishing marginal returns is first evident when theSth4th3rd2nd6thworker is hired.

Diminishing marginal returns is an economic concept stating that as additional units of a variable…

Answered: For the following output data, assume…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.3CE

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Similar questions

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
How does fixed cost affect marginal cost? Why is this relationship important?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
What is a production technology?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
What is a production function?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?

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For the following output data, assume that the amounts of all nonlabour resources are fixed. Number of Workers Output 0 1 40 2 75 3 105 4 130 5 150 6 160 Diminishing marginal returns is first evident when the Sth 4th 3rd 2nd 6th worker is hired.