Refer to the production table for jeans to answer several questions. Capital Input (Sewing Machines per Day) 0 1 2 3 4 Capital Input (Sewing Machines per Day) 3 Marginal Physical Product 0 units 0 0 0 0 0 (Click to select) V 0 1 0 0 15 222 20 21 21 /1 Labor Input (Workere per Day) 2 3 4 5 21 Jeans Output (Pairs per Day) 0 0 50 78 92 94 0 34 3862 46 50 52 0 44 64 73 78 50 48 72 83 86 Suppose a firm has three sewing machines and can vary only the amount of labor input. Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Compute the marginal physical product. Labor Input (Workers per Day) 2 4 5 3 Jeans Output (Paire per Day) 83 92 73 c. Is total output still increasing when MPP begins to diminish? 6 0 d. What is the value of MPP when output no longer increases? 51 81 99 101 6 7 99 0 51 82 103 104 7 8 103 0 47 80 103 104 b. At what amount of labor input does the law of diminishing returns first become apparent in the table of marginal physical product? 8 103

Refer to the production table for jeans to answer several questions. Capital Input (Sewing Machines per Day) 0 1 2 3 4 Capital Input (Sewing Machines per Day) 3 Marginal Physical Product 0 units 0 0 0 0 0 (Click to select) V 0 1 0 0 15 222 20 21 21 /1 Labor Input (Workere per Day) 2 3 4 5 21 Jeans Output (Pairs per Day) 0 0 50 78 92 94 0 34 3862 46 50 52 0 44 64 73 78 50 48 72 83 86 Suppose a firm has three sewing machines and can vary only the amount of labor input. Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Compute the marginal physical product. Labor Input (Workers per Day) 2 4 5 3 Jeans Output (Paire per Day) 83 92 73 c. Is total output still increasing when MPP begins to diminish? 6 0 d. What is the value of MPP when output no longer increases? 51 81 99 101 6 7 99 0 51 82 103 104 7 8 103 0 47 80 103 104 b. At what amount of labor input does the law of diminishing returns first become apparent in the table of marginal physical product? 8 103

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 Establish input demand function in case of multiple variable inputs
9:15 AM O Y O 65 Micro15 - Saved d. Righiward A_ 15. When returns to scale are decreasing, total output a. Increases b. Deсreases c. Does not change d. Varies IV. Match The term (column B) that best fits the phrases (Column A below. Column A Column B a. Marginal product A_1. Describe the functional relationship of input and output v_2. Production function b. Least-cost combination _C_3, Infinitesimal change c. Isocost line 4. Output yielded from the last unit of input d. isquant 5. TP divided by the number of variable inputs e. Production function 6. Refers to the declining trend to MP f. Counterproductive conditions 7. Illustrates the varied combinations of inputs at the same level of plant capacity g Finite change 8. Contains combinations of inputs that the same budget can purchase given constant prices h. Marginal rate of substitution 9. Price of labor inputs over price of capital inputs i. Economies of scale 10. Ration between output and input j. Diseconomies of scale k. Maximum…
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4
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