The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000. None of these options are correct. APMP 100 80 MP 180 40 140 120 100 20 80 00 Labor 20 When the firm uses 60 units of labor, what is average total cost at this output? otal th ear- dule and erstanding of on between AVC ly mns 1 and 2 of Table 8.7. The n column 3 of Table 8.8. The rela- ws: Consider the 100 units of output of riable cost of using 4 workers is found workers employed: ct to 0x4 Ise Ave rage ard maginal prodictof abor

The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000. None of these options are correct. APMP 100 80 MP 180 40 140 120 100 20 80 00 Labor 20 When the firm uses 60 units of labor, what is average total cost at this output? otal th ear- dule and erstanding of on between AVC ly mns 1 and 2 of Table 8.7. The n column 3 of Table 8.8. The rela- ws: Consider the 100 units of output of riable cost of using 4 workers is found workers employed: ct to 0x4 Ise Ave rage ard maginal prodictof abor

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

Suppose a chair manufacturer maintains the existing plant and equipment. The manufacturer has observed the following levels of production corresponding to different numbers of workers: Number of Workers Number of Chairs 1 10 2 18 3 24 4 28 5 30 28 7 25 a. Calculate the average and marginal product of labor for this production function. APL MPL - 1. 10 2 18 3 24 4 28 5 30 6 28 7 25 b. Does this production function exhibit diminishing returns to labor? Explain. c. Explain intuitively what might cause the marginal product of labor to become negative.
Please help for this mcq
I need the answer as soon as possible
Moris just opened a chocolate place, it costs her $500 per day to pay for workers’ wages and an additional $2 for each chocolate they make. a. What are the total cost and average cost functions for Moris chocolates b. If Moris chocolate place is open 6 days a week and sells chocolates for $5 each, how many chocoolates does Moris place need to sell each week to break even on its accounting cost?
I need answer typing clear urjent no chatgpt
A chair manufacturer hires its assembly-line labor for $20 an hour and calculates that the rental cost of its machinery is $10 per hour. Suppose that a chair can be produced using 4 hours of labor or machinery in any combination. If the firm is currently using 2 hours of labor for every two hours of machine time, is it minimizing its cost of production? If so, why? If not, how can it improve the situation? The firm O A. is not currently minimizing its cost of production because the ratio of the marginal product of labor to the marginal product capital is equal to the ratio of the wage rate to the rental cost. O B. is currently minimizing its cost of production because its marginal rate of technical substitution less than the ratio of input prices. C. is not currently minimizing its cost of production because the marginal product of labor divided by the wage is less than the marginal product of capital divided by the rental cost. O D. is currently minimizing its cost of production…
Calculate the value of total cost when average cost is $35 and the no of inputs employed is 5
Refer to the graph shown. Within which section(s) of the production function is marginal product decreasing? A B C Number of workers O Band C O A O B O A and B Output
Only typed answer and please don't use chatgpt
QUESTION 6 At a total cost of $3,100, a company can produce 4 scooters. It has fixed costs of $1,000. If it produces 5 scooters, the costs of production total $3,800. Which of the following statements is true? O Variable costs of producing 4 scooters total $3096. O The average (or per unit) cost of producing 5 scooters is $800 per scooter The total cost curve for this firm is downward sloping Fixed costs will be higher when it produces 5 scooters The marginal cost of producing the fifth scooter is $700
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
Typed plz Asap......