Peter's birdhouse factory rents equipment for constructing birdhouses and hires students. Peter pays $50 a day for equipment and $180 a day to each student he hires. The table shows Peter's total product schedule. Calculate Peter's average fixed cost, average variable cost, average total cost, and marginal cost and complete the table. >>> Answer to 2 decimal places. Total Labor product (workers (houses per day) per day) 1 45 2 3 99 162 Average Average Average fixed variable total cost cost cost (dollars per house Margina cost (dollar per house 0

Peter's birdhouse factory rents equipment for constructing birdhouses and hires students. Peter pays $50 a day for equipment and $180 a day to each student he hires. The table shows Peter's total product schedule. Calculate Peter's average fixed cost, average variable cost, average total cost, and marginal cost and complete the table. >>> Answer to 2 decimal places. Total Labor product (workers (houses per day) per day) 1 45 2 3 99 162 Average Average Average fixed variable total cost cost cost (dollars per house Margina cost (dollar per house 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18. This is a 3 part question.What is the relationship between the marginal product of labor and the value of the marginal product of labor?Does history suggest that most technological progress is labor-saving or labor-augmenting?A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Offer a likely explanation, using the concept of opportunity cost.
Ana's Big Burger is a small restaurant that sells hamburgers. For Ana, grills are a fixed input and workers are variable inputs. Assume that labor is Ana's only variable cost. Ana has a fixed cost of $100 per day and pays each of her workers $100 per day. Ana's total product schedule and total cost at each level of labor are presented in the following table. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Quantity of Labor (Workers) 0 1 2 3 4 5 Quantity of Output (Burgers per day) 0 50 150 200 225 235 Marginal Physical Product of Labor (Burgers per day) When hiring the first and second workers, Ana's Big Burger faces Total Cost (Dollars per…
Use the following table to answer the next question. Output Total Cost 0 $10 1 20 2 28 3 38 4 53 5 73 6 98 The total fixed cost of production is ___ $10 ___ $20 ___ $98 ___ $0
4. The daily total product schedule for ACME Ltd. Is given below: Labor (workers) Total Product (boxes/day) 0 0 1 4 2 9 3 16 4 24 5 32 6 39 7 45 8 50 9 54 10 57 11 59 12 60 The cost of labor is $120/worker per day. The cost of capital is $300/day Plot accurately (use a graphing program) the following diagrams. Please put titles on the axes. a. The total product curve. b. The marginal product and average product curves (on the same diagram). Remember that marginal product represents a change and should be plotted at the midpoints e.g. the marginal product of the third worker should be plotted at 2.5 on the labor axis. c. The total cost curve. d. The marginal cost, average variable cost and average cost curves (on the same diagram). Remember that marginal cost represents a change and should be plotted at the midpoints.
Using the information from the isoquant/isocost diagram to the right and assuming that PL = P = $2, complete the table below. (Enter your responses as integers.) Output Units 100 200 300 Total Cost of Output $100 $ $300 Units of Labor Demanded 25 50 Units of Capital Demanded 4 50 75 Units of capital (K) 200 175- 150- 125- 8100- 75- 50- 25+ 0+ 0 25 50 9=100 9 200 100 125 150 q=300 75 Units of labor (L) 175 200 Q Q
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2.4 Draw the isoquants and find the cost function corresponding to each of the following production functions: Case A : q = ²2 Case B : q=0121 + a₂%2 Case C = q=a1²² +₂²² Case D : q = min 21 (23) 01 01 where q is output, z₁ and 22 are inputs. a1 and as are positive constants. [Hint: think about cases D and B first; make good use of the diagrams to help you find minimum cost.) 1. Explain what the returns to scale are in each of the above cases using the production function and then the cost function. Hint: check the result on page 25 to verify your answers/ 2. Discuss the elasticity of substitution and the conditional demand for inputs in each of the above cases.
For each of the following terms, provide a definition, a description of how this line looks on a graph, and any significant relationships between the term in question and other terms on this list. (If A is related to B, you only need to discuss the relationship once!) Average Product of Labor Marginal Product of Labor Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost
First graph the related points, shown in the picture, the part I am confused in doing is how to find the marginal product of each of the first four workers and what the marginal product of each of the second workers.I thought the first set would be 7 and the second set would be 5 but then I noticed I need to do it based on the graph.How would I get both questions via the graph?
4) Consider a firm that has just built a plant, which cost $2,000. Each worker costs $6.00 per hour. Based on this information, fill in the table below.Consider a firm that has just built a plant, which cost $2,000. Each worker costs $6.00 per hour. Based on this information, fill in the table below. Number of Worker Output Hours 0 50 100 150 200 250 300 350 0 400 900 1300 1600 1800 1900 1950 Marginal Fixed Variable Total Marginal Product Cost Cost Cost Cost Average Variable Cost Average Total Cost -- Consider a firm that has just built a plant, which cost $2,000. Each worker costs $6.00 per hour. Based on this information, fill in the table below.
Graph the change on the production function when a firm decreases its labour
Consider a production process where flowers are grown (the output) using gardeners (labor) and greenhouses (capital). The quantity of flowers grown per day with various combinations of labor and capital are shown in the table. Fill in the marginal product of labor in the table below. (Enter your responses as integers).