Suppose that a local taco shop's costs are described in the table below. At what point does this firm first experience diminishing returns to labor? (This is also sometimes called the law of diminishing returns.) Show how you know. Employees in the kitchen 10 11 12 13 14 15 16 Output( total Fixed Variable Total meals Costs Costs Cost served) 75 $12,000 $1,000 $13,000 $12,000 $2,000 $14,000 $12,000 $3,000 $15,000 $12,000 $4,000 $16,000 $12,000 $5,000 $17,000 $12,000 $6,000 $18,000 $12,000 $7,000 $19,000 200 450 650 750 800 825

Suppose that a local taco shop's costs are described in the table below. At what point does this firm first experience diminishing returns to labor? (This is also sometimes called the law of diminishing returns.) Show how you know. Employees in the kitchen 10 11 12 13 14 15 16 Output( total Fixed Variable Total meals Costs Costs Cost served) 75 $12,000 $1,000 $13,000 $12,000 $2,000 $14,000 $12,000 $3,000 $15,000 $12,000 $4,000 $16,000 $12,000 $5,000 $17,000 $12,000 $6,000 $18,000 $12,000 $7,000 $19,000 200 450 650 750 800 825

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Labor (workers) Output 1 20 2 50 3 70 4 80 85 The table shows daily output for small pizzeria based on the number of workers hired. Suppose fixed costs are $40 and labor costs are $20 per worker. The average total cost of producing 80 units equals $1.50 per unit. $2.25 per unit. $0.75 per unit $0.25 per unit.
Consider a small photography studio with 8 workers and 5 The total cost of labor and capital is $3,200. In order to reduce total operating costs, the owner leases 5 additional printers and fires 5 workers. After these changes, the salary of each worker increases by $30, the cost of using each of the printers (both new and old) remains constant, and the total cost of labor and capital decreases to $2,900. What is the cost of using one printer?
Quantity of Labor (workers) Total Product (units per hour) 0 12 34 56 0 259 151817 The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the worker because A) 4th; the average product of labor is also increasing B) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker C) 3rd; the average product of labor is also increasing D) 5th; output declines with the 6th worker E) 5th; output is maximized
© Macmillan Learning The figure depicts the long-run average total cost curve for Magma Motors. If this firm is currently producing 11,000 cars per year, what does it experience if it increases output by 1,000 cars? Figure: Long-Run Average Total Cost Curve for Magma Motors Cost (per car) $5,000 4,000 0 Long-run average total cost $10,000 11,000 12,000 Quantity economies of scope economies of scale minimum efficient scale diseconomies of scale
Quantity Labor Total Product Fixed Cost 0 1 2 3 4 Table I Perky Dry Cleaners 0 10 18 24 28 $30 $1.25 $130.00 $5.42 $100 Variable Cost Total Cost 0 100 10 20 30 40 Assuming these values in dollars per hour, what are Perky Dry Cleaners' total cost of producing 24 units?
. Given the following fixed and variable costs and the volumes, calculate the total andunit costs.
Question 7 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Total Cost (ATC) when Output (Q) is 80? $12.50 $1,000 $11.25 O $10.83 20
Fill in the space (d) in the table below associated with the firm William Perry, Inc., that delivers refrigerators in the Chicago area, using the two inputs of labor and trucks. Number of Amount of Trucks Labor 2 2 2 2 2 2 2 0 1 2 3456 Total Output 0 75 (c) 380 (f) Average Product of Labor (a) (b) 100 (d) (e) 75 Marginal Product of Labor 100 50 (g) 0
Costs and Profit Maximization: Work It Out 1 Suppose Margie decides to lease a photocopier and open up a black-and-white photocopying service in her dorm room for use by faculty and students. Her total cost, as a function of the number of copies she produces per month, is given in the table. Number of Photocopies Per Month Total Cost Fixed Cost Variable Cost Total Revenue Profit 0 $100 1,000 $110 2,000 $125 3,000 $145 4,000 $175 5,000 $215 6,000 $285 a. Fill in the missing numbers in the table, assuming that Margie can charge 6 cents per black-and-white copy. Margie's fixed cost is: $ Variable cost, 0 photocopies/month: $ Variable cost, 1,000 photocopies/month: $ Variable cost, 2,000 photocopies/month: $ Variable cost, 3,000 photocopies/month: $ Variable cost, 4,000 photocopies/month: $…
Question 12 of 20 $20 MC $18 $16 $14 ATC $12 AVC $10 $8 $6 $4 $2 $0 20 40 60 80 100 Output (Q) In the diagram above, when the firm's Output (Q) is 60, Average Total Cost (ATC) is: $14.00 $18.00 $11.00 O $12.50
solution plz
Question 6 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Variable Cost (AVC) when Output (Q) is 60? $7.50 $6.25 $5.00 $450 20