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MP and MRP and Profit-Maximization Questions: If tacos sell for $2.50, and wage=$12.50, answer questions #1-#3 MP Worker-Hours 0 1 2 3 4 5 6 7 8 9 c. 7.5 d. 62 0 15 28 38 47 54 59 62 64 65 1. What is the MP of the 5th worker-hour? a. 10 b. 7 C. $2 d. $12.50 Tacos 2. What is the MRP of the 8th worker-hour? a. $5 b. $160 (Question #1) MRP (Question #2) 3. How many worker-hours should this firm employ to maximize profit? a. 5 b. 6

MP and MRP and Profit-Maximization Questions: If tacos sell for $2.50, and wage=$12.50, answer questions #1-#3 MP Worker-Hours 0 1 2 3 4 5 6 7 8 9 c. 7.5 d. 62 0 15 28 38 47 54 59 62 64 65 1. What is the MP of the 5th worker-hour? a. 10 b. 7 C. $2 d. $12.50 Tacos 2. What is the MRP of the 8th worker-hour? a. $5 b. $160 (Question #1) MRP (Question #2) 3. How many worker-hours should this firm employ to maximize profit? a. 5 b. 6

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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MP and MRP, and Profit-Maximization Questions: If tacos sell for $2.50, and wage=$12.50, answer questions #1-#3 Worker-Hours 0 1 23456789 c. 7.5 d. 62 0 15 28 38 47 54 59 62 64 65 1. What is the MP of the 5th worker-hour? a. 10 b. 7 c. $2 d. $12.50 Tacos 2. What is the MRP of the 8th worker-hour? a. $5 b. $160 MP (Question #1) MRP (Question #2) 3. How many worker-hours should this firm employ to maximize profit? a. 5 b. 6 c. 9 d. 2 4. Production Function General Form Question What is the general form of the production function, as discussed in class? a. Q=f(Employment, Capital)
Transcribed Image Text:MP and MRP, and Profit-Maximization Questions: If tacos sell for $2.50, and wage=$12.50, answer questions #1-#3 Worker-Hours 0 1 23456789 c. 7.5 d. 62 0 15 28 38 47 54 59 62 64 65 1. What is the MP of the 5th worker-hour? a. 10 b. 7 c. $2 d. $12.50 Tacos 2. What is the MRP of the 8th worker-hour? a. $5 b. $160 MP (Question #1) MRP (Question #2) 3. How many worker-hours should this firm employ to maximize profit? a. 5 b. 6 c. 9 d. 2 4. Production Function General Form Question What is the general form of the production function, as discussed in class? a. Q=f(Employment, Capital)
Inited States 4. Production Function General Form Question What is the general form of the production function, as discussed in class? a. Q=f(Employment, Capital) b. Q=f(Employment, Wage) c. Q=f(Revenue, Cost) d. Q=f(Price, Wage, Rental Rate of Capital) 5. Production Function Question: Why don't we care about production-maximization in the context of this course? a. There is no hard boundary to production-maximization. b. Maximizing production would simply demand E*=everyone, and K*=all of it. c. Without a cost function or any type of constraint, production-maximization is trivial. All of the above. d. 6. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E,K)=K¹/2E1/2, what is E*, the optimal level of labor? (numbers only, if the answer is "10 workers", type "10" ONLY, without quotations) 7. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E.K)=K1/2E1/2, what is the optimal level of profits? (numbers only, if the answer is "$10", type "10" ONLY, without quotations)
Transcribed Image Text:Inited States 4. Production Function General Form Question What is the general form of the production function, as discussed in class? a. Q=f(Employment, Capital) b. Q=f(Employment, Wage) c. Q=f(Revenue, Cost) d. Q=f(Price, Wage, Rental Rate of Capital) 5. Production Function Question: Why don't we care about production-maximization in the context of this course? a. There is no hard boundary to production-maximization. b. Maximizing production would simply demand E*=everyone, and K*=all of it. c. Without a cost function or any type of constraint, production-maximization is trivial. All of the above. d. 6. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E,K)=K¹/2E1/2, what is E*, the optimal level of labor? (numbers only, if the answer is "10 workers", type "10" ONLY, without quotations) 7. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E.K)=K1/2E1/2, what is the optimal level of profits? (numbers only, if the answer is "$10", type "10" ONLY, without quotations)
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