Questions: Based on Previous Question Part (a), answered by a Bartleby Expert. b) Does Explain why or why not this Production Function exhibits Diminis hing Returns to Labor? c) What might cause the Marginal Product of Labor to become negative? Previously Answered Question: a) Calculate the marginal and average product of labor for this production function? Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers: Data Expert Solution of Workers of Chair Marginal ProductAverage Product 1 10 18 Number of 1 2 Number of Chairs 10 18 24 28 30 28 25 2 3 4 5 6 24 28 30 28 25 10 S 6 4 2 2 3 10 9 8 7 6 3.57

Questions: Based on Previous Question Part (a), answered by a Bartleby Expert. b) Does Explain why or why not this Production Function exhibits Diminis hing Returns to Labor? c) What might cause the Marginal Product of Labor to become negative? Previously Answered Question: a) Calculate the marginal and average product of labor for this production function? Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers: Data Expert Solution of Workers of Chair Marginal ProductAverage Product 1 10 18 Number of 1 2 Number of Chairs 10 18 24 28 30 28 25 2 3 4 5 6 24 28 30 28 25 10 S 6 4 2 2 3 10 9 8 7 6 3.57

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Which of the following production functions with inputs K, L, and H exhibits Constant Returns to Scale (CRS)? (Assume Ā > 0 is a constant) a) Y = AK/2L/2 b) Y = ĀK/2L/3H/4 c) Y = ĀK/2 – L/H d) Y = ĀKL/2H\/2
Suppose that a firm's production function is Q = F(L) = -1L³-30L² + 5,000L. Its marginal product of labor is MPL = -3L2-60L +5,000. a. At what amount of labor input are the firm's average and marginal product of labor equal (other than at L = 0)? Instructions: Enter your answer as a whole number. units. b. Confirm that the average and marginal product curves satisfy the relationship discussed in the text. When the amount of labor input is less than the quantity identified in your answer above, the marginal product of labor is greater than the average product of labor. When labor is greater than the amount identified above, the marginal product of labor is less than the average product of labor.
A firm can manufacture a product according to the production function Q = F(K, L) = KO.SL0.5. (a) What is the average product of labor, AP, when the level of capital is fixed at 36 units and the firm uses 16 units of labor? (b) What is the marginal product of labor, MP, when capital is fixed at 36 units?
2. Consider a production function: x(l, k) = Alªk³. Showing all of your work: (a) Under what conditions are the marginal products of labor 1 and capital k positive? (b) Under what conditions are the returns to labor and capital diminishing? (c) Under what conditions are the returns to scale increasing, decreasing, and constant?
A firm engaged in the manufacture of RTWS faces the short-run production function Q = 250L - 5L², where L is the number of units of labor and Q is the number of RTWs produced annually. d.) How many RTWS can be produced by the firm in a year if there are 10 units of labor? e.) Compute the marginal product of the 40th unit of labor. f.) How many RTWs can be produced by the firm in a year if there are 40 units of labor? g.) Sketch the graph of the production function.
The table below forms part of production function analysis for Elegance Holdings Ltd. No. of workers Total Physical Average product Physical Product 0 1 3 5 7 8 11 12 14 Required: 0 12 30 54 90 100 115 115 110 Marginal Physical Product a) Compute: i. The Average Physical Product ii. The Marginal Physical Product b) Draw the curve that illustrates the three relationships. c) From the diagram that you have drawn in B above, prove the law of diminishing returns.
I need all parts of the question answered, thank you.
Given the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a) Mathematically find the minimum cost combination of capital and labour to produce a given level of output.b) Does the production function in part (a) show increasing returns to scale, decreasing returns to scale, or constant returns to scale? Explain. (c) Using isoquants and isocosts, graphically illustrate the effect of an increase in the wage rate, assuming the firm is producing at the same level of output.
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What is the difference between the short run and long run for a firm? How does this relate to fixed and variable inputs?
Discuss the main feature behind the long run average cost curve in terms of usage of input.
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