Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the number of barbers from 4 to 5? From 5 to 6? Does it continue the pattern of diminishing marginal returns? Explain. Widgets (Q)1.002.003.004.00Workers (L)3.254.45.29.x Wage Rate per hour$10$10$10$10= Cost$32.50$44.00$52.00$90.00Table 7.7LaborQuantityFixed CostVariable CostTotal Cost116$160$80$240240$160$160$32060$160$240$400472$160$320$48080$160$400$560684$160$480$640782$160$560$720Table 7.9 Output and Total CostsRefer to Table 7.9 and Figure 7.7 above. What isthe marginal gain in output from increasing thenumber of barbers from 4 to 5? From 5 to 6?Does it continue the pattern of diminishingmarginal returns? Explain.

Answer to the question is as follows:

Answered: Refer to Table 7.9 and Figure 7.7…

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ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

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Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the number of barbers from 4 to 5? From 5 to 6? Does it continue the pattern of diminishing marginal returns? Explain.

Widgets (Q)
1.00
2.00
3.00
4.00
Workers (L)
3.25
4.4
5.2
9.
x Wage Rate per hour
$10
$10
$10
$10
= Cost
$32.50
$44.00
$52.00
$90.00
Table 7.7
Labor
Quantity
Fixed Cost
Variable Cost
Total Cost
1
16
$160
$80
$240
2
40
$160
$160
$320
60
$160
$240
$400
4
72
$160
$320
$480
80
$160
$400
$560
6
84
$160
$480
$640
7
82
$160
$560
$720
Table 7.9 Output and Total Costs
Refer to Table 7.9 and Figure 7.7 above. What is
the marginal gain in output from increasing the
number of barbers from 4 to 5? From 5 to 6?
Does it continue the pattern of diminishing
marginal returns? Explain.

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