Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
13th Edition
ISBN: 9781337742535
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
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
Chapter 13 Solutions
Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
Ch. 13.1 - Prob. 1STCh. 13.1 - Prob. 2STCh. 13.1 - Prob. 3STCh. 13.1 - Prob. 4STCh. 13.2 - Prob. 1STCh. 13.2 - Prob. 2STCh. 13.2 - Prob. 3STCh. 13.2 - Prob. 4STCh. 13 - Prob. 1QPCh. 13 - Prob. 2QP
Ch. 13 - Prob. 3QPCh. 13 - Compare the firms least-cost rule with how buyers...Ch. 13 - Prob. 5QPCh. 13 - Prob. 6QPCh. 13 - Prob. 7QPCh. 13 - Prob. 8QPCh. 13 - Prob. 9QPCh. 13 - Prob. 10QPCh. 13 - Prob. 11QPCh. 13 - Prob. 12QPCh. 13 - Prob. 13QPCh. 13 - Prob. 14QPCh. 13 - Prob. 15QPCh. 13 - Prob. 16QPCh. 13 - Prob. 1WNGCh. 13 - Prob. 2WNGCh. 13 - Prob. 3WNGCh. 13 - Prob. 4WNGCh. 13 - Prob. 5WNG
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- A firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and 200,000 on materials. What was the firms accounting profit?arrow_forwardFill in the gaps in the table below. Quantity of Variable Input Marginal Product of Variable Input Average Product of Variable Input Total Output 1 225 2 300 3 300 4 1140 5 225 225 6arrow_forwardThe firm’s production data is given in the table below. What is the marginal product for the 4th worker? Number of workers Quantity of Computers Produced (Total Product) 0 0 1 15 2 28 3 38 4 46 5 52arrow_forward
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- Andy Kay is a mobile telecom service operator uses it internet modem and 2 computers to produce reports, the marginal product of the computer is 50 pages a day and the marginal product of the internet modem is 500 pages per day .The rental price of the computer is GHC10 per day,while that of modem is GHC50 per day.Is Andy kay utilizing modem and computers in a cost -minimizing manner?arrow_forwardThe average product of labor for three workers is 16 and the marginal product of labor for the fourth worker is 6. What is the average product of labor for four workers?arrow_forward0arrow_forward
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