Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
13th Edition
ISBN: 9781337742535
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 13.1, Problem 2ST
To determine

Difference between Marginal Revenue Product (MRP) and Value Marginal Product (VMP).

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What is the definition of Marginal Revenue Product? Give an example
The data in the table below represents Total product (TP), for an agri-business involved in potato production.     Capital (fixed factor) Labor (variable factor) Output(units) or Total physical product (TPPL) Average physical product (APPL) Marginal physical product (MPPL) 10 0 0     10 1 7     10 2 20     10 3 39     10 4 55     10 5 66     10 6 70     10 7 70     10 8 67         Calculate the marginal product and average product value.  At what point do diminishing marginal returns set in? And using the values of AP and MP obtained from part (i), plot the graphs of TP, AP and MP being careful to fully label the graph and explain briefly the law of diminishing marginal returns from your computation.      How does the hypothesis of diminishing returns (MP& AP) influence the behaviour of costs (MC& AC)?
The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. The following table shows the total and marginal products of labor for a trawler. Crew Size (L) (No. of Workers) Amount of Fish Caught per Week ( Q) (Hundreds of Lbs) Marginal Product ( MPL) (Hundreds of Lbs) 5 15 10 30 15 55 25 80 25 95 15 105 10 110 5 10 110 11 105 -5 12 95 -10 Suppose the owner of the trawler can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $1,125 per week. Assuming that the owner of the trawler is interested in maximizing profits, what is the optimal crew size? workers |2 3 4 5 67 8 9을
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