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.

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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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