QUESTION 7 Consider the following information: Q = 12 L +31 K PL-37, PK-5, P=117 and C-3,274 What is the profit maximizing level of labor? QUESTION 8 Consider the following information: Q=19 L +59 K PL 54, PK-11, P-33 and C-4,732 What is the amount of maximized profits? QUESTION 9 Consider the following information: Q=36 L +7 K PL-14, PK 41, P-64 and C=7,596 What is the amount of maximized profits?

QUESTION 7 Consider the following information: Q = 12 L +31 K PL-37, PK-5, P=117 and C-3,274 What is the profit maximizing level of labor? QUESTION 8 Consider the following information: Q=19 L +59 K PL 54, PK-11, P-33 and C-4,732 What is the amount of maximized profits? QUESTION 9 Consider the following information: Q=36 L +7 K PL-14, PK 41, P-64 and C=7,596 What is the amount of maximized profits?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.5CE

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ECONOMICS
The table below shows the weekly relationship between output and number of workers for a factory with a fixed size of plant. P= 10$: w=100$ a) Calculate the marginal product of labor. b) At what point does diminishing returns set in? C) Calculate the average product of labor. D) Find out optimum level of variable input usage
Suppose a firm faces the following average and marginal products of labor: APL = 50 + 2L - 0.05L2 MPL = 50 + 4L - 0.15L2 At what value of labor does Stage III of production begin?
(A) With P = 20, W = 25 and TFC = 500: Labor Output (Q) (L) 5 10 25 35 50 60 10 25 60 70 80 90 Marginal Physical Product of AVC=VC/Q ATC=TC/Q Labour (MPPL) 2 3 4 2 2 1 Average Physical Cost Product of (TC) (VC) Labour (APPL) 2 2.5 2.4 2 1.6 1.5 MPPL = Change in Q / Change in L APPL=Q/L TC = TFC + VC VC=W* L MC = Change in TC / Change in Q Total Variable Marginal Average Cost Variable 625 750 1125 1835 1750 2000 125 250 625 875 1250 1500 Cost (MC) 15 10 6 10 15 30 Average Total Cost Cost (AVC) (ATC) 12.50 10.00 10.42 12.50 15.63 16.62 62.5 30.00 18.75 26.21 21.88 22.22 Based on this table, answer this: 1. How much output will this firm produce? If the price of output increases to $30, how does your answer change? 2. If the productivity of labor increases by 10% (all else equal), how much more labor will the firm hire? 3. Below what price will this firm decide to produce zero units of output? (i.e. shut down)
True or false The law of diminishing returns implies that the marginal product of labor (MPL) is increasing as labor input increases.
QUESTION 12 A research study published in Social Science Medicine. "Production Functions for General Hospitals," estimated the following general hospital production function in the Netherlands: Q = 5*Staf 24+Beds 64Drugs 04:5pecialists 02, where Qis a measure used by the authors for patient care. Suppose a hospital currently utilizes the following inputs: Staff=10, Beds = 100, Drugs = 50, Specialists =10. Use a spreadsheet to find the following. If the hospital increases its specialists by one (1), that is, employs an 11th specialist, the increase in Q (marginal product) will be: O A. 1.23. O B. 96. OC. 83. OD. 49. O E. 31. QUESTION 13 A study published in Social Science Medicine, "Production Functions for General Hospitals," estimated the following general hospital production function: Q = 5*Staff 34-Beds 64xDrugs 04Specialits 02, where Q is a measure used by the authors for patient care. If we increase all inputs by 1%. the percentage change in Q will be: O A.5.0 O B. 1.04. OC 3.3.…
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Resource specialization and division of labor cause the marginal product of labor to increase, but only for a time. Group of answer choices True False
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doubt EXERCISE 11.6 Suppose capital and labour are perfect complements in a one- to-one ratio. That is, suppose that Q = min (L, K). Currently, the wage is w=5 and the rental rate is r = 10. What is the minimum cost and method of produc ing Q = 20 units of output? Suppose the wage rises to w' = 20. If we keep total cost the same, what level of output can now be produced and what method of production (input mix) is used? PVER
Given the productivity function, P(L, K) 23L0.35K0.65, find the following: = A) Find the marginal productivity of labor function. Do not convert negative exponents to positive or it will be marked incorrect. PL(L, K) B) Find the marginal productivity of capital functon. Do ot convert negative exopnents to positive or it will be marked incorrect. PK(L, K) C) When 19 units of labor and 10 units of capital are invested, what will the marginal productivity be in terms of labor? Round to 4 decimal places if needed. D) When 19 units of labor and 10 units of capital are invested, what will the marginal productivity be
1. Consider a firm with Total Output function (Production Function) given by Q = 6L2 – 0.4L3, where L is variable labor input. The firm is faced with the decision to hire the optimal number of workers in order to maximize its output level. (a) Obtain the Marginal Product function. (b) Find the Average Product function. (c) Determine the level of employment that would maximize the firm’s output level. (d) Verify that the second-order condition is met for the firm's output maximum.