Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 14, Problem 2SPPA
To determine
To compute:
The L's marginal product and average product schedule and the range at which the workers at which the marginal returns increase.
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Among the three stages of production, until what point should one produce considering the law of diminishing marginal product?
Shan's Dumpling House can produce 100 dumplings, using one worker, and 175 dumpling, using two workers. What is the marginal product of the second worker?
Explain your answer.
If the slope of the total productivity line is decreasing as output increases, what does that say about marginal productivity?
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a
b
Question 32
C
Marginal productivity is increasing.
Marginal productivity is decreasing.
Marginal productivity is flat (constant).
d Cannot be determined from the information given.
Chapter 14 Solutions
Foundations of Economics (8th Edition)
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- 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 laborarrow_forwardQ(A) Use the following information to show the producers equilibrium under the isoquant/ isocost approach. a) Data below shows the combinations of two factor of production. Use the following data and plot the isoquant curve. combinations units of uk unit of l A 18 2 B 12 3 C 9 4 D 6 6 E 4 9 F 3 12 G 2 18 (b) Let the price of labor is Rs 1 per unit and the price of capital is Rs.4. Total expenditure of the firm is Rs.36 then find two bundles to plot isocost line.arrow_forwardwhich of the following best describes marginal product?A.)Left over output- the loaves a bakery makes but does not sell that goes unused. B.) The total number of loaves a bakery can create with 5 workers and a fixed amount of capital. C.) The loaves made by a bakery using a substandard quality flour that ultimately harms business profits. D.) When the number of bakery staff increases from 2 to 3 bakers, 5 additional loaves are made.arrow_forward
- Help pleasearrow_forwardWhat is the law of diminishing marginal product, In which stages of production it manifest and What is the logical justification for the law of diminishing marginalarrow_forwardSuppose a chair manufacturer maintains the existing plant and equipment. The manufacturer has observed the following levels of production corresponding to different numbers of workers: Number of Workers Number of Chairs 1 10 2 18 3 24 4 28 5 30 28 7 25 a. Calculate the average and marginal product of labor for this production function. APL MPL - 1. 10 2 18 3 24 4 28 5 30 6 28 7 25 b. Does this production function exhibit diminishing returns to labor? Explain. c. Explain intuitively what might cause the marginal product of labor to become negative.arrow_forward
- do fast all answer.arrow_forwardExplain what is meant by and what causes "Diminishing Marginal Product". Why is it only relevant in the short run?arrow_forwardThe production function expressed in the table below represents the amount of hot dogs Hot Dog on a Stick makes during a lunch hour based on the number of workers. Calculate the marginal product of the 8th worker. # of Workers 7 8 9 10 Hot Dogs Produced 83 97 110 107arrow_forward
- A firm pays $10 per unit of labor and $5 per unit of capital. make diagram of the isocost curves for production total cost of $100; total cost of $200; and total cost of $500.arrow_forwardWhy might marginal product be increasing at lower levels of output and decreasing at higher levels of output?arrow_forwardNonearrow_forward
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