The owner of a Colorado bakery is maximizing profit.KThe price of a loaf of bread is $4.00, a bakery worker's wage rate is $8 an hour, and the bakery employs ten workers.What is the marginal product of the tenth bakery worker? If, when the price of a loaf of bread rises to $5.00, the bakery hires twelve workers, what is the marginal product of the twelfth worker?>>> Answer to 2 decimal places.When the price of a loaf of bread is $4.00, the marginal product of the tenth bakery worker is

The optimal labour hiring condition is required to obtain the required values. A firm that maximizes…

Answered: The owner of a Colorado bakery is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18. This is a 3 part question.What is the relationship between the marginal product of labor and the value of the marginal product of labor?Does history suggest that most technological progress is labor-saving or labor-augmenting?A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Offer a likely explanation, using the concept of opportunity cost.
A firm’s quantity of output is 10 units. The price of labor is $25 per unit and the price of capital is $100 per unit. The input combination of labor and capital is 20 units and 30 units respectively. Calculate: a. LTC b. LAC
Suppose that Tim runs his own lawn care service and that his firm is competitive in the lawn care industry. He has a fixed number of tools that can be used to maintain a yard, but he needs to determine the productivity gained from hiring various numbers of workers per week. Which of the following statements best represents the idea behind the marginal product of labor ( MPL )? When Tim hires more workers, he can mow more lawns per week, but at a decreasing rate. If Tim hires twice as many workers per week, he can mow twice as many lawns per week. If Tim buys one more lawn mower, he can mow 13 more lawns per week. If Tim hires an additional worker per week, he can mow 11 more lawns per week. The following graph portrays the weekly total product curve for lawn mowing given a fixed amount of capital and varying labor inputs. (Note: Each black point (plus symbol) represents a point on the total product curve.) 100 90 во 70 60 50 40 30 20 10 xxxx_ Total Product ° 0 1 2 4 5 7 8 10 LABOR…
The Rocky Mountain Spring Water Company experiences a surge in orders, because the water of one of its major competitors is taken off the market due to news that samples contained benzene. As the Company struggles to increase production of its bottled water, it finds that the marginal product of labor, its only variable input, approaches zero. When the marginal product of labor becomes zero this month, the firm Select one: O a. will still be able to fill additional orders this month without hiring more workers. O b. won't be able to fill any additional orders this month. O c. will achieve maximum output per unit of labor. O d. will be able to fill additional orders this month by hiring more workers.
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First graph the related points, shown in the picture, the part I am confused in doing is how to find the marginal product of each of the first four workers and what the marginal product of each of the second workers.I thought the first set would be 7 and the second set would be 5 but then I noticed I need to do it based on the graph.How would I get both questions via the graph?
▪You have fulfilled your dream by buying a McDonald’s franchise. You start hiring employees and come to realize that the first employees you hired were extremely productive, but every additional person you hired seemed to be less productive. ▪Why does that occur? Are the last people you hired just lazy? ▪The capital is fixed in the short run, but you can change your labor in the short run. ▪You decide to calculate the marginal product and the average product of your business.
At its current employment level of labor and capital, a firm observes the following. Marginal product of labor = 30 units, Marginal product of capital = 60 units, Price of labor = $3 per unit and Price of capital = $6 per unit. This firm should
Use a graph to illustrate and explain the individual supply of labour curve. In youranswer, describe the forces that determine the form (shape) of the individualsupply of labour curve.
4. Ariel's T-shirt company hires labor at a rate of $8 per hour and rents capital (sewing machines) at a cost of $128 per machine per day. Throughout this question, you can think of Ariel renting fractions of sewing machines if necessary. Her production function is given by q = 6LK where q measures the number of T-shirts produced each day, L measures the total number of hours worked by all employees in a day and K measures the number of sewing machines. (a) Using the Lagrangian technique, find the cost-minimizing combination of labor and capital for the production of q T-shirts per day. (b) Write down an equation for Ariel's long-run expansion path. (c) Find Ariel's long-run total, average, and marginal cost as a function of the number of T-shirts she produces each day. (d) Sketch Ariel's long-run total expansion path in a diagram. Sketch at least two isoquants with the associated isocost lines. Using your diagram, determine how Ariel's long-run expansion path will shift if the cost of…
A custom motorcycle company can produce more motorcycles if it has more workers. The company has experimented with hiring workers in teams of four and has come up with the following table relating the number of workers to the companies annual production Part1. Using the straight line tool, graph the production function based on the information given. Construct the curve using four line segments joined end to end. Don it graph the individual points. Part 2. Give the numeric answers to tap decimals. A. The marginal product of each of the first four workers is ______ B. The marginal product of each of the second four workers is _______ C. Diminishing returns begin with the _______ worker.

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