The following table shows different numbers of workers hired by Jedi Star, a competitive firm producing light-sabers, and corresponding levels:output. Suppose that Jedi Star sells its product at $1,000 per light-saber and hires its workers in a competitive labor market paying the samerate of $6,000 to all workers.Total ProductNumber of light-saber(Number of light-sabers permakers01day)Complete the following table by calculating Jedi Star's marginal product, marginal revenue product, and marginal profit.Marginal RevenueProduct(Thousands of Dollars)Marginal Product(Number of light-sabers)014232636444550654756AAAAAAAMarginal Profit(Thousands ofDollars)

Step 1: Find the marginal product.The marginal product is the quantity of ADDITIONAL product…

Answered: The following table shows different…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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9. Assume the production function of a farmer who keeps a poultry is q = f(1) = 100L05, where Lis labor (i.e., the number of people working on the farm) and q is output (number of birds). If the wage rate is w = 2 and the price per bird is p = 3, how many people should he employ? Explain your answer.
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3. Elsa's handicrafts has the production function f(x1,x2) = (min{x1 ,2x2})2, where x, is the amount of plastic used, x, is the amount of labor used, and f(x1,x2) is the number of lawn ornaments produced. Let w, be the price per unit of plastic and w, be the wage per unit of labor. а. What is Elsa's cost function c(w1,w2,y)? b. If wi = w2 = 1, then what is Elsa's marginal cost of producing y units of output? What is the number of units of output that she would supply at price p? At these factor prices, what is her average cost per unit of output? c. If the competitive price of the lawn ornaments she sells is p = 48, and w, = w2 = 1, how many will she produce? How much profit will she make? d. More generally, at factor prices w, and w2, what is her marginal cost? At these factor prices and an output price of p, what is the number of units she will choose to supply?
4. A bakeshop has the following production function for cupcakes: 1) 2) 3) Q = 4K 0.5 L0.5, (MPK = 2L0.5/K0.5, MP₁ = 2K 0.5/L0.5), where K is the quantity of capital, L is the quantity of worker hired. The cost of capital is r = $1000, and the cost of labor is w = $40 per worker. Does the production function exhibit diminishing marginal return of labor? Explain. Find the cost function of the bakeshop, C(Q). (Hint: Use the conditions MRTS =MPL/MPK = w/r and Q = 4K 0.5 L0.5, solve the optimal input choices K(Q) and L(Q). Then the cost function is given by C(Q) = r K(Q) + w L(Q)). Does the bakeshop experience economies of scale, diseconomies of scale, or neither? Explain with the calculation of scale economies index.
Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus's output in a given day: In the following table, complete the marginal product column. Workers Output Marginal Product Total Cost Marginal Cost Average Total Cost 30 S 70 120 4 165 %24 200 220 7 230 A worker costs $120 a day, and the firm has fixed costs of $180. Use this information to fill in the column for total cost in the previous table.
Answer the given question with a proper explanation and step-by-step solution. Ned’s Tuna has the following production function: q = K3/4L1/4, Where q is the number of tunas per hour, L is the number of workers and K is the number of boats. Suppose that w = $20/hour (PL) and r = $30/hour (PK). a. Find Ned’s marginal product of labor (MPL). Does it exhibit diminishing marginal returns? b. Find Ned’s marginal product of capital (MPK). Does it exhibit diminishing marginal returns? c. Find and draw an isocost function for C
Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labour). What is the marginal product of labour?A. 5B. 5KC. 5LD. 5K/L
Consider a production process where flowers are grown (the output) using gardeners (labor) and greenhouses (capital). The quantity of flowers grown per day with various combinations of labor and capital are shown in the table. Fill in the marginal product of labor in the table below. (Enter your responses as integers).
Solve Part C on paper
Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. Number of Workers. 0 1 2 3 4 5 6 Units of Output 0 38 85 150 220 320 380 The marginal product of the fourth worker is
Refer to the given data in the table below. Assume that labor is the only variable input. Please calculate the marginal product of labor for each level of labor input and and graph it using the diagram below. # Workers (L) 1 2 3 4 5 Total Output 7 12 15 16 16 Provide your answer below: 20 15 10 5- -2 -1 1 2 3 4 7 9 10 Labor -5- Marginal Product

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