In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firmfaces is shown in the table below.Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table.Instructions: Enter your answers as a whole number.Units ofLabor101112131415TotalProduct200214226236244250Wage Rate$789101112Total LaborCost700 X1,712 X2,035 X2,360 X2,684 X3,000 XMarginalResource(Labor) Cost1,012 X323 X325 x324 X316 X

Total labor cost is the total cost of hiring laborers. Total labor cost is calculated as units of…

In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table.

In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Lesson 7- Production Question 6

A: Answer = The missing value is 5 The Function is MPL = 5L-0.5Explanation:Answer =…

Q: 3. A firm producing hockey sticks has a production function given by q = 2√kl. In the short-run, the…

A: Answer: Given, q=2klk=100v=$1w=$4 (a). The total cost function is given below: Total cost=units of…

Q: The total cost function of a firm is given by: C = q(wy{v)! Where q is total output, W and V are…

Q: efer to the graph. Which one of the following would cause a move from point d to point e along…

A: A cost curve is a graph representing production costs as a function of total amount produced in…

Q: (You can solve this -- think through all the formulas you know!) Suppose you know the following…

A: In short run , Capital is fixed and labors are variable. Average variable cost is the difference…

Q: Which of the following statements is FALSE? At point "A", the average product of labor is falling.…

A: In the first stage, AP increases at an increasing rate and MP also increases at an increasing rate…

Q: In the short run, the firm's amount of capital equipment is fixed at k = 100. The rental rate for k…

A: As per Bartleby guidelines, providing solutions for first four parts.IntroductionCost and production…

Q: Question 13 Consider a firm whose cost function when both L and K are variable is shown in the…

A: Total cost: It refers to the total cost incurred while producing the commodity.Average Total cost…

Q: Define different average cost functions in the short run production. What are the shapes of the…

A: Short run production is a production cycle when atleast one of the factors of production is fixed.…

Q: draw a diagram showing the marginal cost curve and average total cost for a typical business firm.…

A: The total cost curve of the firm indicates the total cost incurred for the firm for producing the…

Q: The firm Greench produces Nutella. The production function is given by the following: Nutella = min{…

A: step: 1To find the optimal amount of labor that the firm should hire, we can use the concept of cost…

Q: Consider a firm uses only labor as a variable factor of production in the short run, with the help…

A: Profit Optimization:Profit optimization refers to the process of maximizing the profitability of a…

Q: Given the information from the graph below, draw the cost curve of the firm showing the minimum…

A: At Q1= 100 (L,K) = (25,25) Q2= 200, (L,K) = (50,50) Q3= 300, (L,K) = (75,75) At cost minimization…

Q: The total cost function of a firm is given by: C = q(W)¹³(V) Where q is total output, W and V are…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: suppose Jack produces chocolate with two inputs : factory and labor. If the workers become more…

A: Labor productivity has increased. Labor productivity and cost of production (except fixed cost) are…

Q: Let's assume that a firm's total weekly costs are as follows: 1. Salaries = $5000. 2. Supplies =…

A: Accounting profit refers to the net income of a business as calculated using the generally accepted…

Q: The following equation represents the cost structure of a firm: C= 20 + 4q. The marginal cost of…

A: Answer: Given, Cost function: C=20+4q Marginal cost: it refers to the addition to the total cost…

Q: When average variable cost is at a minimum, Multiple Choice marginal cost is at a maximum. the…

A: Option D When AVC is at a minimum, APL is at maximum AVC and AP are inversely related.

Q: Consider the following short-run production function (where L = variable input, Q = output): Q = 6L…

A: Marginal product is the ratio of change in input to change in output. The average product is the…

Q: Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the…

A: The marginal resource cost is the additional cost incurred by employing one more unit of the input.

Q: In the short run, a firm has constant marginal returns to its variable input. Draw a graph…

A: In economics, marginal cost refers to the change in the total cost of production that arises when…

Q: Undercover World, a book shop, has the following marginal physical product curve (labeled MPP) for…

Q: In short-run production where labor is a variable input, the relationship between marginal product…

A: We are given, Economy is in short run. Labor is the variable input. Marginal cost of production =…

Q: Question 10 Consider a firm whose cost function when both L and K are variable is shown in the…

A: Total cost: It refers to the total cost incurred while producing the commodity.Marginal Cost: It…

Q: What is the difference between the factor demand derived from cost minimization and that obtained…

A: Cost minimization simply means that businesses maximize their productivity or use the least…

Q: If output per per person is .25 and the wage rate is 10,what is the average variable cost?

A: Answer: Given, Output per person=OutputL(units of labor)=0.25Wage rate(W)=10 To find, Average…

Q: True or false and explain Suppose a firm’s marginal product of labour is MPL = 10/L, where L is…

A: In the labor market of the economy, the equilibrium wage rate and the equilibrium quantity of labor…

Q: The cost that a firm pays in money to hire a resource is referred to as cost. A) a minimized B) an…

A: Business can be of various types and forms. For example in radio business, there is radio production…

Q: When a firm uses K units of capital and L units of labor, it can produce Q units of output with the…

A: Production function measures the relationship between the units of output produced by using the…

Q: Define and explain the difference between short run and long run and identify the relationship…

A: Short-run average cost curves: In the short run, the shape of the average cost curve is 'U' shaped.…

Q: Consider a firm that produc good using capital and labor denote by L the quantity of and by K the…

A: The marginal product of labor(MPL) is the change in the output which results for employing an…

Q: A production function for a good Q uses inputs of labor (L) and capital (K) and takes the form Q=LK.…

A: Cost The number of goods and services necessary to produce or manufacture is referred to as the…

Q: D D Question 1: Jerusha, a woodworker, builds coffee tables using both labor (L) and tools (capital,…

A: A short-run production function is a function that demonstrates the connection between the quantity…

Q: The Southern Mail produces local newspapers. The company can rent its equipment and hire workers at…

A: Given information: Q = 2L0.5 + 3 K0.5 -----------> Production function MPL = (1/L0.5) MPK =…

Q: A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but labour is…

A: In economics, a production function is a means of examining the relationship between input and…

Q: A firm has the production function q = K0.25L0.25 , where K is capital, L is labor, and q is output.…

A: ***Since the third subpart of the question has not been mentioned clearly, so, the expert has solved…

Q: uppose A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but…

A: When MC = AVC, we know that MP = AP MP = dX/dL = - 0.6L2 + 36L + 1620 AP = X/L = - 0.2L2 + 18L +…

Q: A plant's production function is Q = 2KL. For this production function, MPx = 2L and MPL = 2K. The…

A: Given production function Q=2KL MPk=2L MPl=2K W=4 r=6

Q: Production Functions and Cost Functions in the short run and in the long run Consider the production…

A: Production function: Price of capital (r) = 16 and price of labor (w) = $4.In the short run,…

Q: Provide a diagram that illustrates, for the short-run analysis, the average cost function, the…

A: The firms, and businesses operate with the motive of enhancing their profits, and minimizing their…

Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…

A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…

Q: Suppose the short-run production function is q = 5L0.5. If the marginal cost of producing the 5th…

A: Given information: q = 5L0.5 ---------> short run production function. where 'q' is the output…

Question

In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm
faces is shown in the table below.
Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table.
Instructions: Enter your answers as a whole number.
Units of
Labor
10
11
12
13
14
15
Total
Product
200
214
226
236
244
250
Wage Rate
$7
8
9
10
11
12
Total Labor
Cost
700 X
1,712 X
2,035 X
2,360 X
2,684 X
3,000 X
Marginal
Resource
(Labor) Cost
1,012 X
323 X
325 x
324 X
316 X

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define total labor cost and marginal resource (labor) cost.

VIEW

Step 2: Explain the answer:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

handwrite it out
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is depicted in the table below. Assume the product price is $4. Calculate the marginal revenue product and the marginal resource cost, and then complete the table. Instructions: Enter your answers as whole numbers. Quantity of Labor Marginal Product Marginal Revenue Hourly Wage Rate ($) Marginal Resource Total Product Total Labor Product ($) Cost ($) (Labor) Cost ($) 10 400 5 50 es 11 420 20 8. 88 12 438 18 11 132 13 454 16 14 182 14 468 14 17 238 15 480 12 20 300 The equilibrium wage rate ($) = The equilibrium level of labor use = workers
Assume that the above data are for Ali's Surfboards firm which hires workers at $500 a week and its total fixed cost is $1,000 a week.Calculate APL,MPL, AVC, AFC, AC, and MC of each output in the table, ( Values are given for L=1, you are asked to do the rest up to L=7).Labor Output APL MPL AVC AFC AC MC
Suppose Marcus produces chocolate with two inputs: factory and labor. If the workers become more productive with better training, state whether the average fixed cost, average variable cost, average total cost, and marginal cost will rise or fall?
(1) Let's go back to the beginning. q = AL^aK^1-a Suppose labor is fixed at some level L, a = 0.5, and A = 1. Calculate K* a)What is T C* ? b)What is the short-run fixed cost?
University level intermediate microeconomics, theory of production
Diminishing returns occurs in the short run because The average product of labor will decrease after some amount of labor is hired in the short run b. There are fixed inputs to production in the short run The marginal product of labor will decrease after some amount of labor is hired in the short run There are variable inputs to production in the short run
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Assume the product price is $2. a. Calculate the marginal revenue product and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number. Marginal Marginal Resource Units of Total Labor Marginal Product Wage Rate Total Product Revenue Labor Cost Product (Labor) Cost 10 200 $11 $110 11 220 20 12 132 12 238 18 13 156 13 254 16 14 182 14 268 14 15 210 15 280 12 16 240 b. What are the equilibrium wage rate and level of employment? Equilibrium wage rate = $ %3D Equilibrium level of employment workers
A firm operates in the short run with the production function Q = 10 K0.5 L 0.5, where Q is output, K is capital, and L is labor. The price of capital is $100 per unit, and the wage rate is $50 per unit of labor. How many units of capital and labor should the firm use to minimize its total cost while producing 400 units of output?
The table below shows ABC firm short-run production function. The company hires workers at a wage rate of $400 a day and his total fixed cost is $1000. Labor (workers) Total product (output) 0 0 1 12 2 25 3 30 4 44 5 50 Calculate the average total cost of producing 25 Calculate total cost of producing 47 units. Calculate average variable cost if 30 units are produced. Calculate the marginal product of producing 44 units. Calculate average product of the 4th worker
Can you please help solve question 9 a,b and c please show full working so I can compare it to my own work Thank you
Mainly concerned with how to answer part b.