Question 2 Output Marginal Product Variable Cost Fixed Cost Labor $0 $5 100 100 $5 $5 250 $10 $5 3 350 $15 $5 4 50 $20 $5 25 $25 $5 430 $30 $5 For the firm whose production function and costs are specified in the table, which of the following statements is incorrect? From 0 through 250 units of output, the marginal product is rising, so the marginal cost is falling From 250 units of output through 430 units, marginal product is rising so the marginal cost is rising. Total cost first increases at a decreasing rate, then increases at an increasing rate Marginal cost first decreases, then increases 5.

Question 2 Output Marginal Product Variable Cost Fixed Cost Labor $0 $5 100 100 $5 $5 250 $10 $5 3 350 $15 $5 4 50 $20 $5 25 $25 $5 430 $30 $5 For the firm whose production function and costs are specified in the table, which of the following statements is incorrect? From 0 through 250 units of output, the marginal product is rising, so the marginal cost is falling From 250 units of output through 430 units, marginal product is rising so the marginal cost is rising. Total cost first increases at a decreasing rate, then increases at an increasing rate Marginal cost first decreases, then increases 5.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Labor (workers) Output 1 20 50 3 70 4 80 85 The table shows daily output for small pizzeria based on the number of workers hired. Suppose fixed costs are $20 and labor costs are $40 per worker. The average total cost of producing 80 units equals $2.25 per unit. $0.25 per unit. $1.50 per unit. $0.75 per unit
Marginal Total Marginal Cost RevenueRevenue Quantity Variable Price costs PER UNIT $0.00 $5,3 --- --- 1 $5.50 $5,3 $6.00 $5,3 3 $6.50 $5,3 4 $7.00 $5,3 5 $7.50 $5,3 $8.00 $5,3 The fixed costs are $70. Calculate the marginal costs if the current level of production is 3 units and the producer decides to increase its output by 1 unit. Show your answer with a number only. The number must have 2 digits after the decimal point.
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(b) Calculate the missing total variable cost figure in the table shown below and clearly show your workings. Quantity (units) Total Variable Cost Marginal Cost 13 ?? 27 115 7
Is this correct?
computer system. The last run of the production cost schedule resulted in the incomplete listing shown below (listed as question numbers). From your knowledge of cost theory, solve for the values in the table to the corresponding questions below. During the last few days the Superior Company has been running into problems with its ATC AFC - MC TC TFC TVC 75 75 A 75 100 75 В 1 75 37.5 15 TC total costs, TFC = total fixed costs, TVC = total variable costs, ATC = average total costs, %3D %3D AFC = average fixed costs, AVC = average variable costs, MC = marginal costs What is the correct numerical value for C in the table? 100 37.5 O 57.5 O 20
Output (Concession Stand Items) Number of Workers Employed Per Day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120 0 $2,000 2000 $8.00 0 -2000 0 0 0 0 8 100 2 $120 240 $2,000 2240 $8.00 800 -1640 2.40 20 22.40 2.40 8 400 4 $120 480 $2,000 2480 $8.00 3200 720 1.20 5 6.20 0.80 8 750 6 $120 720 $2,000 2720 $8.00 6000 3280 0.96 2.66 3.62 0.67 8 900 8 $120 960 $2,000 2960 $8.00 7200 4240 1.07 2.22 3.29 1.60 8 1,025 10 $120 1200 $2,000 3200 $8.00 8200 5000 1.17 1.95 3.12 1.92 8 1,125 12 $120 1440 $2,000 3440 $8.00 9000 5560 1.28 1.77 3.06 2.40…
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(a) Explain intuitively why a firm's average cost curves are U-shaped and why does its average variable cost curve achieve its minimum at a lower level of output than the average total cost curve? (b) You are given the following data on output and inputs for 10 production periods: TIME OUTPUT CAPITAL (K) LABOR (L) 1 225 12 20 240 14 22 3 278 10 24 4 212 14 18 5 205 12 20 6 297 16 24 7 242 16 20 8 155 10 14 212 8 20 10 180 8 14 Estimate the parameters (A, a, ß ) of Cobb-Douglas production function using the Least-squares (OLS) regression method. [ Assume Q = AK“ L® ]. Use the estimated parameters to determine: Returns to Scale, Equations for the marginal product of labor and Capital. Calculate the marginal products of capital and labor for the input combinations: K = 10, L = 25. Make a comment based on your findings.
For each lettered space in the following table, determine the appropriate dollar amount.
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