The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationshipbetween the number of workers Zippy hires, total output, marginal product, and marginal revenue product of labor, with all other inputs being heldconstant. Assume that the selling price is $10 per box of paper.Labor InputTotal OutputMarginal ProductMarginal Revenue ProductPrice =$10(Workers per day)(Boxes of paper per day)(Boxes of paper per day)(Dollars)00142263644550AAAAAA14$14012$12010$1008$8064$60$40654If the wage rate is $50.00 per day, Zippy will hireworkers.Suppose that the workers in this industry have unionized and have collectively bargained for a wage of $70.00.As a result of this collective bargaining agreement, Zippy willthe number of workers it hires to hireworkers.

If the wage rate is $50.00 per day, Zippy will hire 5 workers. The Zippy Paper Company is operating…

Answered: The Zippy Paper Company has no control…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Imagine you've been hired as the manager of a firm producing a certain product X. The following schedule shows the total production per week of product X Additionally, assume each unit of product X sells for $10 per unit, workers can be hired in a competitive labor market for $500 per week, and the rental price of a unit of capital is $R per week Capital (K) Quantity (Q) Labor (L) 0 5 0 1 5 40 2 5 105 3 5 170 4 5 245 5 5 325 6 5 410 7 5 500 8 5 595 9 5 695 10 5 760 11 5 810 12 5 855 13 5 890 14 5 915 15 5 930 a. How many workers should be hired? To answer this question, append to the above table three new columns similar to columns (3), (4) and (5) of Table 5-2 in your textbook. Explain your final answer!
Assume that the average product for six workers is fifteen. If the marginal product of the seventh worker is eighteen. A)marginal product is rising b)marginal product is falling c)average product is rising d)average product is falling
Suppose that the price of labor (the wage rate) is $100 a day and that the rental price of capital is $50 a day. Currently the Jedie Weapons Corporation is using ten units of capital and five units of labor to produce 500 lightsabers a day. Each lightsaber sells for $2. At the current input use levels, the marginal product of capital is 40 lightsabers per day and the marginal product of labor is 60 lightsabers a day. Is the firm making an economic profit at its current levels of operation? 2. Could the firm increase its profits at the current level of output by adjusting its use of labor and capital? If so, how should input use be adjusted?
Assume a firm is trying to produce q0 units of output at the lowest total cost. The wage decreases, rotating the isocost line as shown in the below graph. Make the necessary changes to the graph to show the input combination that will now produce q0 at the lowest total cost. Make sure you show the new levels of labor and capital.
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).
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
Time left 1:30:35 Suppose you are given the following output and (incomplete) cost table (assume labor is the only variable input and that all workers are paid an equal wage rate): Labor Output 0 0 2 3 4 100 units 270 units 570 units 650 units Fixed Cost Variable Cost C. a. an amount less than $15 b. an amount between $15 and $25 an amount between $25 and $35 d. an amount between $35 and $45 e. an amount greater than $45 Total Cost $50,000 Average Variable Cost undefined What is marginal cost when the third worker is employed? $61.53
The following table shows how apple output changes as additional apple pickers are hired per day. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket. Daily Apple Production Marginal Marginal Physical Revenue Number of Apple Product Total Product Pickers Output (baskets Revenue (dollars (pickers) (baskets) per picker) (dollars) per worker) 4. 2 10 3. 15 4 19 22 Refer to the Daily Apple Production table. If the price of apples increases to $10 per basket and the equilibrium wage is $40 per day, how many apple pickers will the firm hire? Refer to the Daily Apple Production table. If the price of apples increases to $10 per basket and the equilibrium wage is $40 per day, how many apple pickers will the firm hire? Multiple Choice 2 pickers 3 pickers 4 pickers 5 pickers
Say the marginal product of labour in production is 4 and the average product of labour is 7. Then, increasing the amount of labour used in production will lower the average product of labor. True False
8.Suppose the marginal product of labor is MPL=10 and the cost of each worker is w=50. What is the marginal cost at this point? Hint: In discrete terms, MPL=output from adding an additional worker, w=cost of an additional worker, and MC=cost of an additional unit of output.
The following table depicts the number of grapes that can be picked in an hour with varying amounts of labor. Calculate marginal physical product (MPP). Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Number of Pickers Output of Grapes (per hour) (in flats) 0 0 1 2 3 4 5 6 7 8 2233279 10 19 34 42 43 42 Product per Picker Marginal Physical (in flats)

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