Question 24You have recently secured a position as the manager at a company specializing in the production of a certain product, X. Below is a schedule detailing the weekly total production ofproduct X. Furthermore, assume that each unit of product X sells for $26.16, labor can be hired from a competitive job market for $150 per week, and the cost of each unit of capital is$58.85 per week. Determine the value marginal product (VMPL) of the 7th worker.Labor (L) Capital (K) Output (Q)03031513352360343953145532156783333315395910333440460347511123485 hedule detailing the weekly total production ofper week, and the cost of each unit of capital istz uolzsanoC

The objective of this question is to calculate the value marginal product (VMPL) of the 7th worker.…

Answered: Question 24 You have recently secured a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An isoquant curve for producing a 10 lb bag of wheat is given as below. What is the Marginal Rate of Technical Substitution (MRTS) at a point (L, K)=(2,9)? Capital 1, 14 $15 14 13 12 11 DRBT6543210 9 8 7 -4 -3 4 3 2,9 3,5 43 52 6,1.5 1 2 3 4 5 6 7 Labor
Question 39 Inna runs a small jewelry shop. They hire one helper and they expect to pay them wages of $20,000 per year, pays annual rent of $7,000, and spends $15,000 per year on materials. They have $20,000 of their own funds invested in equipment that could earn them $2,000 per year if alternatively invested. They has been offered $15,000 per year to work as a jeweler for a competitor. Total annual revenue from sales is $92,000. Their total accounting profits/loss would be: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a $65,000 b $10,000 C $50,000 d $-10,000 Question 40 rlor companies says it can sell 200 markers at $200 per marker or 300 markers the midpoint
Q2. The production function is y = LaK¹- and (p = $10,w = $20, r = $15). (1) Show whether the production exhibits DRS or CRS or IR.S. (ii) Obtain the Marginal Rate of Technical Substitution (MRTS). (iii) Find (Lº, Kº) to minimize the cost in producing given output, y=100.
What is correct about the relation between the production function and costs? Question 10 options: If you become more productive, costs per unit increase There is no relation between costs and the production function Both the production function and the cost function are decreasing (have negative slope) If you become more productive, costs per unit decrease
Suppose your current job pays you $225,000 a year. However, you are considering starting your own company. Based upon your research, you estimate your first-year total revenue to be $4,700,000. There are however several costs of running the company during this first year, such as the cost of materials which will equal $1,300,000, employees who will receive in total $1,500,000, utilities which will cost $750,000, and rent that will be paid to the landlord that equals $1,000,000. Based on this information, solve for both your accounting profit and economic profit during this first year. Also, based upon these profit values, state whether you are better off starting this company or staying in your current job.
A bottling company uses two inputs to produce bottles of the soft drink Sludge: bottling machines (K) and workers (L). The isoquants have the usual smooth shape. The machines cost $1,000 per day to run (r), and the workers earn $200 per day (w). At the current level of production, the marginal product of machines (MP) is an additional 473 bottles per day, and the marginal product of labor (MP, ) is 38 more bottles per day. Is this firm producing at minimum cost? If it is minimizing cost, explain why. If it is not minimizing cost, explain how the firm should change the ratio of inputs it uses to lower its cost. The bottling company O A. is not minimizing the cost of production because MP/r> MP, w and should use less labor and more machines. O B. is not minimizing the cost of production because MP,Ir MP, w and should use more labor and fewer machines. O E. is not minimizing the cost of production because MP/MP, = r/w and should use more labor and fewer machines.
5- Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,000 per year if alternatively invested. He has been offered $15,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,000 per year. Total annual revenue from pottery sales is $72,000. Calculate the accounting profit and the economic profit for Gomez's pottery firm.
Total Product 75 68 66 57 42 15 0 23 never intersect the horizontal axis. 5 6 7 8 Refer to the figure above, if the marginal product of labor curve was plotted on this figure, with marginal product on the vertical axis, the marginal product of labor curve would Labor (units) reach its maximum at the 5th unit of labor. intersect the horizontal axis at a point somewhere beyond the 8th unit of labor. intersect the horizontal axis at a point between the 5th and 6th unit of labor.
What do economists mean by "deminishing returns" to an input? What causes diminishing returns? Where would one observe this principle at a job and the real world?
Known function is the production of a commodityQ = 40X + 12X2 - 1.2X3a. Calculate how many units of input X in order to achieve maximum total productb. Calculate how many units of input X in order to achieve maximum marginal productc. Calculate how many units of input X in order to achieve maximum average product
Subpart 1-3
Total Product 75 68 66 57 42 15 0 1 2 3 4 5 6 7 8 Labor (units) Refer to Figure 11-1. If the marginal product of labor curve was plotted on this figure, with marginal product on the vertical axis, the marginal product of labor curve would never intersect the horizontal axis. intersect the horizontal axis at a point between the 5th and 6th unit of labor. intersect the horizontal axis at a point between the 6th and 7th unit of labor. intersect the horizontal axis at a point somewhere beyond the 8th unit of labor.

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