Microeconomics (6th Edition)
6th Edition
ISBN: 9780134106243
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 11.A, Problem 13PA
To determine
Marginal product of labor.
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The marginal product of a machine is 10 units of output per hour.
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The rental rate of a machine is $4 per hour
The hourly wage rate is $3
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switch towards and why?
Assuming the firm is minimizing its cost and the
price of labour is $10 per unit and the price of
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Gull Roza is a florist specializing in floral arrangements for weddings, graduations, and other events. Gull Roza has a fixed cost associated with space and equipment of $50 per day. Each worker is paid $80 per day. The daily production function for Gull Roza is shown in the accompanying table.
Quantity of Labor (workers)
Quantity of floral arrangements
0
0
1
110
2
200
3
270
4
300
5
320
6
320
Calculate the marginal product of each worker.
Calculate the marginal cost, Average total cost, and average variable cost of each level of output.
Chapter 11 Solutions
Microeconomics (6th Edition)
Ch. 11.A - Prob. 1RQCh. 11.A - Prob. 2RQCh. 11.A - Prob. 3RQCh. 11.A - Prob. 4PACh. 11.A - Prob. 5PACh. 11.A - Prob. 6PACh. 11.A - Prob. 7PACh. 11.A - Prob. 8PACh. 11.A - Prob. 9PACh. 11.A - Prob. 10PA
Ch. 11.A - Prob. 11PACh. 11.A - Prob. 12PACh. 11.A - Prob. 13PACh. 11.A - Prob. 14PACh. 11.A - Prob. 15PACh. 11 - Prob. 11.1.1RQCh. 11 - Prob. 11.1.2RQCh. 11 - Prob. 11.1.3PACh. 11 - Prob. 11.1.4PACh. 11 - Prob. 11.1.5PACh. 11 - Prob. 11.2.1RQCh. 11 - Prob. 11.2.2RQCh. 11 - Prob. 11.2.3RQCh. 11 - Prob. 11.2.4RQCh. 11 - Prob. 11.2.5PACh. 11 - Prob. 11.2.6PACh. 11 - Prob. 11.2.7PACh. 11 - Prob. 11.2.8PACh. 11 - Prob. 11.2.9PACh. 11 - Prob. 11.2.10PACh. 11 - Prob. 11.2.11PACh. 11 - Prob. 11.2.12PACh. 11 - Prob. 11.3.1RQCh. 11 - Prob. 11.3.2RQCh. 11 - Prob. 11.3.3RQCh. 11 - Prob. 11.3.4PACh. 11 - Prob. 11.3.5PACh. 11 - Prob. 11.3.6PACh. 11 - Prob. 11.3.7PACh. 11 - Prob. 11.3.8PACh. 11 - Prob. 11.3.9PACh. 11 - Prob. 11.3.10PACh. 11 - Prob. 11.4.1RQCh. 11 - Prob. 11.4.2RQCh. 11 - Prob. 11.4.3RQCh. 11 - Prob. 11.4.4PACh. 11 - Prob. 11.4.5PACh. 11 - Prob. 11.4.6PACh. 11 - Prob. 11.4.7PACh. 11 - Prob. 11.4.8PACh. 11 - Prob. 11.4.9PACh. 11 - Prob. 11.4.10PACh. 11 - Prob. 11.5.1RQCh. 11 - Prob. 11.5.2RQCh. 11 - Prob. 11.5.3PACh. 11 - Prob. 11.5.4PACh. 11 - Prob. 11.5.5PACh. 11 - Prob. 11.5.6PACh. 11 - Prob. 11.5.7PACh. 11 - Prob. 11.5.8PACh. 11 - Prob. 11.5.9PACh. 11 - Prob. 11.6.1RQCh. 11 - Prob. 11.6.2RQCh. 11 - Prob. 11.6.3RQCh. 11 - Prob. 11.6.4RQCh. 11 - Prob. 11.6.5RQCh. 11 - Prob. 11.6.6PACh. 11 - Prob. 11.6.7PACh. 11 - Prob. 11.6.8PACh. 11 - Prob. 11.6.9PACh. 11 - Prob. 11.6.10PACh. 11 - Prob. 11.6.11PACh. 11 - Prob. 11.6.12PACh. 11 - Prob. 11.6.13PA
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Similar questions
- You own a coffee shop and use both labor and capital to make lattes. Currently, the marginal product of labor is 50 lattes a day while the marginal product of capital is 20 lattes a day. You pay your labor $100/day, and you rent your Nuova Simonelli Appia Life Black 2 espresso machine for $25 a day. The price of a latte is $5. Are you employing your inputs effectively? If not, what would you do to increase efficiency?arrow_forwardA firm minimizes its costs by using inputs such that the marginal product of labor is 10 and the marginal product of capital is 20. The price of capital is $10 per unit. What must the price of labor be? (hint: the marginal product per dollar should be equal for both inputs)arrow_forwardIn the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number. Marginal Resource Total Labor Units of Labor Total Product Wage Rate Cost (Labor) Cost 10 200 $7 11 214 8 12 226 9. 13 236 10 14 244 11 15 250 12arrow_forward
- Labour is the beginning and end of production. Explainarrow_forwardSuppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by five units and total costs to increase from $2,700 per week to $3,000 per week. What is the marginal product of the fifth worker? units. (Your answer should be a whole number.) What is the weekly wage rate earned by the fifth worker? $ (Your answer should be rounded to the nearest dollar)arrow_forwardIn the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number. Units of Labor 10 11 12 13 14 15 Total Product 200 214 226 236 244 250 Wage Rate $7 8 9 10 11 12 Total Labor Cost 700 X 1,712 X 2,035 X 2,360 X 2,684 X 3,000 X Marginal Resource (Labor) Cost 1,012 X 323 X 325 x 324 X 316 Xarrow_forward
- The table below lists the marginal product per hour of workers in a light bulb factory. Light bulbs sell for $2 each, and there are no costs to producing them other than labor costs. Compute the value of the marginal product for each additional worker. Instructions: Enter your responses as whole numbers. Number of Workers Marginal Product (Light bulbs per hour) Value of marginal product 1 24 $ 2 22 3 20 4 18 5 16 6 14 7 12 8 10 9 8 10 6 a. If the going hourly wage for factory workers is $24 per hour, then the factory manager should hire workers. If instead the hourly wage for factory workers is $36 per hour, then the factory manager should hire workers. b. Graph the factory's demand for labor. Instructions: Only the two end points need to be plotted to graph the curve. c. Assume that light bulbs instead sell for $3 each. Graph the factory's new demand for labor and in indicate the number of workers the factory manager should…arrow_forwardYou own a landscaping company. You currently have 3 employees and are considering hiring a fourth. Hiring a fourth employee will increase the number of lawns your company can mow from 18 to 20. What is the marginal product of labor of the fourth employee? A) $5 B) 20 lawns C) 2 lawns D) 5 lawnsarrow_forwardSuppose you are considering hiring another worker. Also assume that you are at a firm that is operating at a point where the marginal product of labor is 5 and the price of each unit of labor is $2, and the marginal product of capital is 20 and the price of each unit of capital is $10. Should you hire another worker? If you hire another worker, what will happen to the marginal product of labor and why?arrow_forward
- Will decrea n he fong run, assume a firm uses both labor and capital to produce 25 units of output. The marginal product of the last unit of labor being employed is 100; the marginal product of the last unit of capital being employed is 500. The wage rate of labor is $10. If the firm is minimizing the cost of producing 25 units of output, what must be the unit price of capital?arrow_forwardGive type answerarrow_forwardMagnificent Blooms is a florist specializing in floral arrangements for weddings, graduations, and other events. Magnificent Blooms has a fixed cost associated with space and equipment of $100 per day. Each worker is paid $50 per day. The daily production function for Magnificent Blooms is shown in the accompanying table. Quantity of labor (workers) Quantity of floral arrangements 0 0 1 5 2 9 3 12 14 5 15 a. Calculate the marginal product of each worker. Quantity of labor (workers) 1 Marginal product 2 3arrow_forward
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