Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 11, Problem 17QE
(a)
To determine
Determine the
(b)
To determine
Graphically illustrate the average productivity curve and average variable cost curve.
(c)
To determine
Graphically illustrate the marginal productivity curve for labor.
(d)
To determine
Graphically proves that the marginal productivity curve and marginal cost curve are mirror images of each other.
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Students have asked these similar questions
A production process uses two inputs, labor and capital. If the
marginal product of labor per dollar is higher than the
marginal product of capital dollar, what should the firm do to
lower costs?
Select an answer and submit. For keyboard navigation, use the up/down
arrow keys to select an answer.
a
Increase output
b
Decrease output
C
Increase the amount of capital
d
Increase the amount of labor
8. Average and marginal product of labor
Caroline's pizza restaurant uses a combination of workers and ovens to produce pizzas. The total number of pizzas produced per hour is given by the
function q = 4K0.5 10.5, where K is the number of ovens and I is the number of workers. Although the two inputs are relatively substitutable, the
number of ovens is fixed in the short run, and therefore Caroline is primarily interested in the marginal and average product of labor given her current
number of ovens (4).
Complete the following table using the production function given.
Ovens Workers Pizzas Per Hour Average Productivity
(K)
(L)
(9)
4
1
4
4
4
2
3
4
11.31
13.86
Given Caroline's production function, she faces
marginal productivity of workers
(q/L)
5.66
4.62
MPL
returns to scale. However, you can see that when one input is held constant, the
as more and more workers are added.
Still holding the number of ovens (K) fixed at 4, it would take
workers to produce 32 pizzas per hour.
Barb's Bakery employs three workers who
produce 6 cakes per hour. After Barb
hires a fourth worker, production
increases to 12 cake per hour. Which of
the following statements is TRUE?
a.
b.
C.
d.
Because the marginal product
of the fourth worker is greater
than the average product of
three workers, the average
product must rise.
Because the marginal product
of the fourth worker is less
than the average product of
three workers, the average
product must fall
Because the marginal product
of the fourth worker is less
than the average product of
three workers, the average
product must rise.
Because the marginal product
of the fourth worker is greater
than the average product of
three workers, the average
product must fall.
Chapter 11 Solutions
Microeconomics
Ch. 11.1 - Prob. 1QCh. 11.1 - Prob. 2QCh. 11.1 - Prob. 3QCh. 11.1 - Prob. 4QCh. 11.1 - Prob. 5QCh. 11.1 - Prob. 6QCh. 11.1 - Prob. 7QCh. 11.1 - Prob. 8QCh. 11.1 - Prob. 9QCh. 11.1 - Prob. 10Q
Ch. 11 - Prob. 1QECh. 11 - Prob. 2QECh. 11 - Prob. 3QECh. 11 - Prob. 4QECh. 11 - Prob. 5QECh. 11 - Prob. 6QECh. 11 - Prob. 7QECh. 11 - Prob. 8QECh. 11 - Prob. 9QECh. 11 - Prob. 10QECh. 11 - Prob. 11QECh. 11 - Prob. 12QECh. 11 - Prob. 13QECh. 11 - Prob. 14QECh. 11 - Prob. 15QECh. 11 - Prob. 16QECh. 11 - Prob. 17QECh. 11 - Prob. 18QECh. 11 - Prob. 19QECh. 11 - Prob. 1QAPCh. 11 - Prob. 2QAPCh. 11 - Prob. 3QAPCh. 11 - Prob. 4QAPCh. 11 - Prob. 5QAPCh. 11 - Prob. 1IPCh. 11 - Prob. 2IPCh. 11 - Prob. 3IPCh. 11 - Prob. 4IPCh. 11 - Prob. 5IP
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