The production function for a widget-manufacturing firm is given by q = 9K0.5L0.5, where q is the number of widgets produced each hour, K is the number of specialized staplers (which is fixed at 4 in the short run), and L is the number of employees. What is the average product of labor at L = 36? O 18 O 9 O 1.5 O 3 O none of the above

The production function for a widget-manufacturing firm is given by q = 9K0.5L0.5, where q is the number of widgets produced each hour, K is the number of specialized staplers (which is fixed at 4 in the short run), and L is the number of employees. What is the average product of labor at L = 36? O 18 O 9 O 1.5 O 3 O none of the above

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 31CTQ: A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output...

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Question 19 widget-manufacturing The production function for a firm is given by q = 9K0.5L0.5, where q is the number of widgets produced each hour, K is the number of specialized staplers (which is fixed at 4 in the short run), and L is the number of employees. What is the marginal product of labor at L = 9? O 18 O 3 none of the above
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A firm's production function takes the form: Q(L, K) = min{2L, 3K}, where Q represents output and L and K represent labour and capital, respectively and where w and r give the prices of labour and capital. Assuming no other costs, what would be the marginal cost if the firm increased output by 1 unit? O O MC = Q [ 12/2₁ = Q ( + 1/2 + 1/2 ) MC = W 3r 3w+2r 3w+2r + O MC=3w+2r O W r = 21/1/2+1/1/3/2 O MC =2w+3r MC=1/2
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Suppose college graduates earn $25 an hour and high school graduates earn $5 an hour. Suppose too that the marginal product of college graduates at Johnson Tools is 8 hammers per hour, while the marginal product of high school graduates is 4 hammers per hour (regardless of the number of each type of worker employed). a. What is the least-cost production method for producing 100 hammers in an eight-hour day? O Hire one-third college graduates and two-thirds high school graduates. O Hire two-thirds college graduates and one-third high school graduates. Hire only high school graduates. Hire half college graduates and half high school graduates. O Hire only college graduates. b. What if the marginal product of high school graduates was instead 2? O Hire half college graduates and half high school graduates. Hire only high school graduates. O Hire two-thirds college graduates and one-third high school graduates. O Hire only college graduates. O Hire one-third college graduates and…
Calculate the Average Total Cost for points A & B. Input (Labor) Output TFC TVC TC MC ATC AVC 4. 50 $125 $15 85 $125 $30 O A-S35 -525.83 O 4:52.80 B-5182 OA-S0.36 B-50.s OAS250 BS147 Question 4 Calculate the Average Variable Cost for points A &B Input (Labor) Output TFC TVC TC MC ATC AVC 4. 50 $125 $15 85 $125 $30 OA52.50 -4147 OAS030 -5035
Item 9 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. | APMP 100 80 60 MP AP 60 80 100 120 140 160 20 40 Labor When the firm uses 100 units of labor, what is marginal cost at this level of output? Multiple Choices $33.33 $25 = % O $180 O $90 Ave rage aid m arginal prodictof labor 20