Suppose that labor is Becky's only variable cost and that she has a fixed cost of $30 per day and pays each of her workers $30 per day.Use the orange points (square symbol) to plot Becky's total cost curve on the following graph using the quantities from the preceding table.200180Total Cost16014012010080604020406080100120140160180200QUANTITY OF OUTPUT (Pizzas)True or False: The shape of the production function reflects the law of diminishing marginal returns.TrueFalseTOTAL COST (Dollars)20 2. Inputs and outputsBecky's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Becky's very tiny kitchen has barely enough room for the fourovens in which her workers bake the pizzas. Becky signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this,and because Becky's kitchen cannot fit more than four ovens, Becky cannot change the number of ovens she uses in her production of pizzas in theshort run.However, Becky's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday,Becky lets them know how many workers she needs for each day of the week. In the short run, these workers are variableinputs, and the ovensarefixedinputs.Becky's daily production schedule is presented in the following table.Fill in the blanks to complete the Marginal Product of Labor column for each worker.LaborOutputMarginal Product of Labor(Number of workers)(Pizzas)(Pizzas)15029031204140150

The factor of production (inputs) can be either fixed or variable in the short run. Inputs are…

Suppose that labor is Becky's only variable cost and that she has a fixed cost of $30 per day and pays each of her workers $30 per day. Use the orange points (square symbol) to plot Becky's total cost curve on the following graph using the quantities from the preceding table. 200 180 Total Cost 160 140 120 (Dollars)

Suppose that labor is Becky's only variable cost and that she has a fixed cost of $30 per day and pays each of her workers $30 per day. Use the orange points (square symbol) to plot Becky's total cost curve on the following graph using the quantities from the preceding table. 200 180 Total Cost 160 140 120 (Dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given the number of labor and the total product in the following table, 1- find the average product (APL) and marginal product (MPL) of labor. 2- Draw Total product (TP), average product (APL) and marginal product (MPL) of labor curves Labor (L) Total Product (TP) | Average Product of labor Marginal Product of labor (APL) (APL) 1 10 24 3 39 4 52 5 61 6 66 7 66 8 64 9 54 10 40
Labor (workers per day) Total product (bicycles per day) 0 0 1 4 2 10 3 18 4 25 5 30 The above table shows the relationship between labor input and total product of producing bicycles. The marginal product of the 5th worker is equal to 5 bicycles. 6.25 bicycles. 30 bicycles. 6 bicycles.
Production Total Product Total Fixed Cost Total variable cost Total Cost Average fixed cost Average variable cost Average Total Cost Marginal Cost 0 0 1 25 2 45 3 60 4 70 5 85 6 105 7 135 8 180 9 240 10 315 Assume that fixed costs are $50, labor is the only variable input and its costs are reflected completely in the costs above. Complete the table Graph AFC, AVC, ATC, and MC Explain how increasing returns and decreasing returns are depicted in your graph If the labor input increased by $10 at every unit of production, what would be the effect on your graphs?
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 100 1 74°F Clear 2 3 440 620 800 Q = 200 280 380 480 Average Total Cost (Dollars per bike) Q = 300 Q = 400 240 320 240 320 240 240 Q = 500 480 380 280 Q = 600 800 620 440 Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is $440 per bike. Suppose Ike's Bikes is expecting to produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using one factory On the following graph, plot the three SRATC curves for Ike's Bikes from the…
2. in the table below, the average product of labor at L=3 is: 1 2 7 15 20 a. 0.2 b. 2 c.8 d. 5 e. 3
ASAP!! ANSWER PLEASE Hammas Dadani operates a business and uses the following table for total output or total product as a function of labor units used. LABOR TOTAL OUTPUT 0 0 1 5 2 9 3 12 4 14 5 15 Calculate Marginal Product of Labor and Average Product of Labor? Plot a graph for total product, marginal product and average product separately? Does the graph indicate a situation of diminishing returns? Explain your answer.
using an isoquant/isocost diagram explain the difference between diminishing returns to a variable factor and decreasing returns to a scale
Subpart 4
What is the trend in cost?
GM cuts jobs at its Australian manufacturing unit GM will cut 500 jobs, or about 12% of its workforce, at its Australian plant because of a sharp fall in demand for its locally-made "Cruze" small car. Source: The Wall Street Journal, April 8, 2013 As GM cuts its workforce, how will the marginal product and average product of a worker change in the short run? Suppose that before the cuts the marginal product of GM workers is below their average product. As the number of workers decreases, the marginal product of a GM worker and the average product of a GM worker in the short run. increases; decreases does not change; does not change decreases; decreases increases; increases decreases; increases