Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 16, Problem 6DQ
To determine
Labor and capital as substitutes and complements.
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Students have asked these similar questions
\table[[Number of Factories,Q=100,Q=200,Q=300,Q=400,Q=500,Q=600
Question 19
widget-manufacturing
The production function for a
firm is given by q = 9K0.5L0.5, where q is the number of widgets
produced each hour, K is the number of specialized staplers (which is fixed at 4 in the short run), and L is the
number of employees. What is the marginal product of labor at L = 9?
O 18
O 3
none of the above
Let's assume that a firm produces 60 products. Its total weekly cost (TC) at this output
is $2,100. This includes TVC and TFC. We also know that the firm employs 3 part-
time workers at a wage cost of $600 per worker per week. This is the firm's only
variable cost (TVC). What is the firm's average fixed cost (AFC) at this output?
O $2.50.
O $2.
O $5.
O $100.
O $10.
Let's assume that a firm's total weekly costs are as follows: 1. Salaries of hired workers
$5,000. 2. Supplies = $1,000. 3. Rent = $600, 4. The owners have invested a certain
amount of their own money into the business. This could have earned them interest of
$200 per week if they had chosen to put it into a bank instead of investing it into their
business. 5. The value of the owner's time is estimated to be $800 per week. What are
the firm's total economic costs?
O $6.000
O $7.600.
O $900.
$7.500.
O $6.700.
Chapter 16 Solutions
Economics (Irwin Economics)
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- If, by increasing the qulf, by increasing the quantity of labour used by one unit, the firm can give up 2 units of capital and still produce the same output, then the MRTSLK is: antity of labour used by one unit, the firm can give up 2 units of capital and still produce the same output, then the MRTSLK is: O 4 O 1 O 2 O 0.5arrow_forwardAnswer fast....arrow_forwardUse the table below to answer questions about a firm's hiring decision. Labor (workers) Output (units) Total Cost ($) $50 1 15 $60 2 27 $70 3 37 $80 45 $90 5 50 $100 What is the total cost when the marginal product of labor is 10? Choose one: O A. $60 о в. $30 O C. $20 O D. $50 O E. $70 O F. $10 O G. $90 O H. $40 O . $100 O J. $80 4.arrow_forward
- TOTAL AND MARGINAL PRODUCT Total Product [Output] 70 60 50 40 30 20 10 0 Marginal Product 20 10 0 -10 -20 1 Labor Input 1 2 2 2 3 3 4 4 5 5 6 6 7 7 Reset 8 Labor Input 8 Labor Input PRODUCTIVITY CALCULATIONS Labor Input 0 Output 0 Marginal Product Instructions: Move the slider at the bottom of the diagram to change the quantity of labor hired for both graphs and the table. Move the production slider to 4 units of labor. Suppose you had the information for the L=1 row and the L-4 row, but the row(s) in between them were missing and you didn't have any information in the Marginal Product column. If you wanted to estimate the marginal product, you might assume the marginal products of each of the 3 additional workers are equal. a. Estimate the marginal product of each additional worker if L were to increase from 1 to 4. b. Calculate the slope of the total production function between L-1 and L=4. Larrow_forwardA firm's production function for pretzels is shown in Figure 4.1. If the firm's fixed cost equals $100 per time period and the wage rate equals $1 per unit of labor per time period, calculate the firm's MC, AVC, and AC schedules. Do these cost functions follow the general rules concerning the relationships between MC, AVC and AC?arrow_forwardLO LL 50 45 40 20 15 WAGE (Dollars per hour) 6. Plotting the supply of labor In Philadelphia, 180 people are willing to work an hour as hostesses if the wage is $20 per hour. For each additional $5 that the wage rises above $20, an additional 45 people are willing to work an hour. For wages of $20, $25, $30, $35, and $40 per hour, plot the daily labor supply curve for hostesses on the following graph. Supply 35 25 5. 06 135 180 225 270 315 405 450 LABOR (Number of workers) What is one explanation for why this labor supply curve is upward sloping? MacBook Pro #3 24 2. 4. R M B. Narrow_forward
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