**Table Analysis and Instructions**The table provides data to help analyze the relationship between the number of workers and production costs. Here's how you interact with it, along with some questions to consider:**Table Columns:**1. **Workers**: Number of workers employed.2. **Output**: Units of goods produced.3. **Variable Cost**: Costs that change with output level. Calculated as the number of workers multiplied by the wage per worker.4. **Total Cost**: Sum of variable costs and fixed costs.5. **Average Fixed Cost (AFC)**: Total fixed costs divided by the output.6. **Average Variable Cost (AVC)**: Variable cost divided by the output.7. **Average Total Cost (ATC)**: Total cost divided by the output.8. **Marginal Cost (MC)**: Additional cost to produce one more unit of output.**Questions and Tasks:**1. Assume that capital is fixed at 4 machines, with each costing $2. Wages are $5 per worker. 2. **a.** Analyze how output changes with each additional worker. Reflect on whether the changes meet your expectations and why.3. **b.** Complete the table by calculating the costs and averages: - Use the provided formula and data to fill out the missing variable costs, total costs, and other average costs. - Calculate the marginal cost for each additional unit of output produced as more workers are added.**Instructions for Calculation:**- **Variable Cost for each row**: Workers multiplied by $5.- **Fixed Cost**: 4 machines at $2 each, totaling $8.- **Total Cost**: Variable Cost + $8 (Fixed Cost).- **AFC, AVC, ATC**: Divide corresponding costs by the output.- **MC**: Change in total cost between different levels of output.Engage with this exercise by assessing how labor affects productivity and cost-effectiveness in production settings.

Marginal product is the increase in total product due to an additional unit of worker. Marginal…

Workers output Variable Total Average Average Average cost cost fixed variable Total cost cost cost 0 1 2 3 4 5 6 0 10 25 31 36 40 42 Marginal cost 1. Assume that capital is fixed at 4 machines and the cost of each is $2 while the wage is $5 a. How does output change with each additional worker? Did you expect that? b. Fill in the above table

Workers output Variable Total Average Average Average cost cost fixed variable Total cost cost cost 0 1 2 3 4 5 6 0 10 25 31 36 40 42 Marginal cost 1. Assume that capital is fixed at 4 machines and the cost of each is $2 while the wage is $5 a. How does output change with each additional worker? Did you expect that? b. Fill in the above table

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

ASAP!! ANSWER PLEASE Hammas Dadani operates a business and uses the following table for total output or total product as a function of labor units used. LABOR TOTAL OUTPUT 0 0 1 5 2 9 3 12 4 14 5 15 Calculate Marginal Product of Labor and Average Product of Labor? Plot a graph for total product, marginal product and average product separately? Does the graph indicate a situation of diminishing returns? Explain your answer.
Q. Table 3 above shows how output varies with only one variable input used in production. If the cost of a unit of labor is $500, what is the approximate marginal cost of the 230th unit of output? a. $2.50 b. $8.50 c. $12.50 d. $50.00 e. $100.00
3. We often work with production technologies that give rise to initially increasing marginal product of labor that eventually decreases. Are the following statements then True or False? Explain.The marginal product of labor becomes negative when the slope of the production frontier begins to get shallower as we move toward more labor input.
Construct the average fixed cost, average variable cost, and average total cost schedules and the marginal cost schedule.
Macmillan Learning Consider the table, which reports production information for a firm that uses a fixed amount of capital and varying amounts of labor. Use this information to answer the questions. Do not round answers. What is the marginal product of the third worker? Third worker's marginal product: units What is the average product of the second worker? Round your answer to the nearest whole number. Second worker's average product: units What are diminishing marginal returns, and with which worker do they set in for this firm? Diminishing marginal returns occur in the short run when variable inputs are added to a fixed input, and marginal product declines. In this case, diminishing returns set in with the fourth worker. O Diminishing marginal returns occur in the short run when variable inputs are added to a fixed input, and product declines. In this case diminishing Workers 1 2 3 4 Output (total product) 23 27 33 37
Graph the following table. Number of Workers Total Output 0 0 1 20 2 60 3 150 4 260 5 350 6 420 7 455 8 420 9 375 10 300 What is the marginal product and average product at each level of production? Graph marginal product and average product. Label the areas on the graph of increasing marginal productivity, diminishing marginal productivity, and diminishing absolute productivity.
Labor (workers) Output 0 20 50 70 80 85 OAN 345 0 The table above shows a total product schedule. Suppose that labor costs $20 per worker and fixed costs are $60. The total cost of producing 80 units equals O less than $5. O more than $5 and less than $110. O more than $110 and less than $120. O more than $120 and less than $150. DIS O more than $150.