MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Chapter 12.A, Problem 1QE
To determine
Determine the changes in the marginal rate of substitution, when a firm increases the use of one input, keeping the output constant.
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Consider a firm that produces output using industrial robots and skilled labor. Suppose it is the case
that a reduction in the price of industrial robots causes the firm's labor demand curve for skilled
workers to increase (i.e., to shift to the right). This implies that:
There is diminishing marginal product of robots.
O There is diminishing marginal product of skilled labor.
O Robots and skilled labor are complements.
O Robots and skilled labor are substitutes.
The unit cost of skilled labor is below the unit cost of robots.
IV.
Will can produce a higher grade, Gw, on an upcoming
economic exam by studying. His production function depends
on the number of hours he studies marginal analysis problems,
A, and the number of hours he studies supply and demand
problems, R. Specifically, Gw = 2.5A0.36R 0.64. His roommate
David's grade production function is G) = 2.5A0.25R0.75
a. What is Will's marginal productivity from studying
supply and demand problems? What is David's?
b. What is Will's marginal rate of technical substitution
between studying the two types of problems? What is
David's?
Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive
market. The following table shows the company's production function:
Output
(Number of workers) (Shovels)
Labor
1
100
195
275
4
340
380
Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the
following graph.
40
Producion Function
340
100
130
40
LABOR (Number of workana)
Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the
following graph using the blue points (circle symbol).
Note: Remember to plot each point halfway between two integers. For example, when the number
of workers increases from 0 to 1, the MPL of the first worker should be plotted with a horizontal
coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect
the points.
(genoygl indino
Chapter 12 Solutions
MICROECONOMICS
Ch. 12.1 - Prob. 1QCh. 12.1 - Prob. 2QCh. 12.1 - Prob. 3QCh. 12.1 - Prob. 4QCh. 12.1 - Prob. 5QCh. 12.1 - Prob. 6QCh. 12.1 - Prob. 7QCh. 12.1 - Prob. 8QCh. 12.1 - Prob. 9QCh. 12.1 - Prob. 10Q
Ch. 12.A - Prob. 1QECh. 12.A - Prob. 2QECh. 12.A - Prob. 3QECh. 12.A - Prob. 4QECh. 12.A - Prob. 5QECh. 12.A - Prob. 6QECh. 12.A - Prob. 7QECh. 12 - Prob. 1QECh. 12 - Prob. 2QECh. 12 - Prob. 3QECh. 12 - Prob. 4QECh. 12 - Prob. 5QECh. 12 - Prob. 6QECh. 12 - Prob. 7QECh. 12 - Prob. 8QECh. 12 - Prob. 9QECh. 12 - Prob. 10QECh. 12 - Prob. 11QECh. 12 - Prob. 12QECh. 12 - Prob. 13QECh. 12 - Prob. 14QECh. 12 - Prob. 15QECh. 12 - Prob. 16QECh. 12 - Prob. 17QECh. 12 - Prob. 1QAPCh. 12 - Prob. 2QAPCh. 12 - Prob. 3QAPCh. 12 - Prob. 4QAPCh. 12 - Prob. 5QAPCh. 12 - Prob. 1IPCh. 12 - Prob. 2IPCh. 12 - Prob. 3IPCh. 12 - Prob. 4IPCh. 12 - Prob. 5IPCh. 12 - Prob. 6IP
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