Fixed input: It is an input, which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output. Variable input: This input is directly proportional to the level of output produced, it increases with an increase in output and vice versa. Marginal Product of Labor (MPL): It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force. Here, is the change in quantity. is the change in labor.

Question

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Answer 1

Question

Chapter 6, Problem 1P

To determine

Concept Introduction:

Fixed input: It is an input, which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable input: This input is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Marginal Product of Labor (MPL): It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force.

Here,

is the change in quantity.

is the change in labor.

Expert Solution & Answer

Explanation of Solution

a. Fixed input and variable input.

In this case, the fixed input are machines, refrigerator and yogurt.

Variable inputs are workers, toppings for sprinkling, cups, yogurt mix.

Conclusion:

There are three fixed inputs and the others are variable inputs.

b. Total Product curve:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 4
Fig 1

More quantity of frozen yogurt will be produced as more workers are employed so the total product curve will slope upwards.

Total product curve will start from the origin, on the y-axis quantity of frozen yogurt is measured and on the x-axis quantity of labor is measured.

Conclusion:

The total product curve will slope upwards.

c. Marginal product will decline with an increase in the number of workers:

The marginal product of the first labor is:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 5

The marginal product of the second labor is:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 6

The marginal product of the third labor is:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 7

With an increase in the labor, marginal productivity will decline, so it can be said that with the working of each additional labor, it will be working with the smaller share of the fixed inputs.

Production of an additional labor will be less than the previous labor.

Conclusion:

Therefore, the marginal product of an additional labor will fall.

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Students have asked these similar questions

Please answer questions D-H, I have already answered A , B,C but it may help you to still solve them yourself. Thank you!

2. A firm’s production function is given by:Q = 10KLThe unit capital and labour costs are 2 and 1 pounds respectively. The firm is contracted to produce2000 units.(a) Write out the optimisation problem of the firm. (b) Express this problem using a Lagrangian function. (c) Find values of K and L which fulfil the contract with minimal cost to the firm. (d) Calculate the total cost to the firm.

3. Consider the following estimated regression equation, estimated using a sample of firms, where RDis total firm spending on research and development in USD ($), Revenue is total firm revenuein USD ($), and W ages is the firms’ total spending on wages in USD ($) (standard errors inparentheses):RDd = 1000(600)+ 0.5(0.1)Revenue + 1.5(0.5)W ages,(a) Interpret the coefficients on each of the explanatory variables. (b) Which of the three coefficients are statistically significant at the 5% level of significance? Howdo you know? A researcher runs a two-sided statistical test of the null hypothesis that both the coefficients onthe explanatory variables above are jointly equal to 0.25 (mathematically, that β1 = β2 = 0.25),and reports a p-value of 0.045.(c) What does this p-value mean for the outcome of the test? (d) What would an appropriate two-sided alternative hypothesis look like?

Answer 2

Question

Chapter 6, Problem 1P

To determine

Concept Introduction:

Fixed input: It is an input, which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable input: This input is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Marginal Product of Labor (MPL): It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force.

Here,

is the change in quantity.

is the change in labor.

Expert Solution & Answer

Explanation of Solution

a. Fixed input and variable input.

In this case, the fixed input are machines, refrigerator and yogurt.

Variable inputs are workers, toppings for sprinkling, cups, yogurt mix.

Conclusion:

There are three fixed inputs and the others are variable inputs.

b. Total Product curve:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 4
Fig 1

More quantity of frozen yogurt will be produced as more workers are employed so the total product curve will slope upwards.

Total product curve will start from the origin, on the y-axis quantity of frozen yogurt is measured and on the x-axis quantity of labor is measured.

Conclusion:

The total product curve will slope upwards.

c. Marginal product will decline with an increase in the number of workers:

The marginal product of the first labor is:

The marginal product of the second labor is:

The marginal product of the third labor is:

With an increase in the labor, marginal productivity will decline, so it can be said that with the working of each additional labor, it will be working with the smaller share of the fixed inputs.

Production of an additional labor will be less than the previous labor.

Conclusion:

Therefore, the marginal product of an additional labor will fall.

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Answer 3

Question

Chapter 6, Problem 1P

To determine

Concept Introduction:

Fixed input: It is an input, which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable input: This input is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Marginal Product of Labor (MPL): It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force.

Here,

is the change in quantity.

is the change in labor.

Expert Solution & Answer

Explanation of Solution

a. Fixed input and variable input.

In this case, the fixed input are machines, refrigerator and yogurt.

Variable inputs are workers, toppings for sprinkling, cups, yogurt mix.

Conclusion:

There are three fixed inputs and the others are variable inputs.

b. Total Product curve:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 4
Fig 1

More quantity of frozen yogurt will be produced as more workers are employed so the total product curve will slope upwards.

Total product curve will start from the origin, on the y-axis quantity of frozen yogurt is measured and on the x-axis quantity of labor is measured.

Conclusion:

The total product curve will slope upwards.

c. Marginal product will decline with an increase in the number of workers:

The marginal product of the first labor is:

The marginal product of the second labor is:

The marginal product of the third labor is:

With an increase in the labor, marginal productivity will decline, so it can be said that with the working of each additional labor, it will be working with the smaller share of the fixed inputs.

Production of an additional labor will be less than the previous labor.

Conclusion:

Therefore, the marginal product of an additional labor will fall.

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Answer 4

Question

Chapter 6, Problem 1P

To determine

Concept Introduction:

Fixed input: It is an input, which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable input: This input is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Marginal Product of Labor (MPL): It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force.

Here,

is the change in quantity.

is the change in labor.

Expert Solution & Answer

Explanation of Solution

a. Fixed input and variable input.

In this case, the fixed input are machines, refrigerator and yogurt.

Variable inputs are workers, toppings for sprinkling, cups, yogurt mix.

Conclusion:

There are three fixed inputs and the others are variable inputs.

b. Total Product curve:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 4
Fig 1

More quantity of frozen yogurt will be produced as more workers are employed so the total product curve will slope upwards.

Total product curve will start from the origin, on the y-axis quantity of frozen yogurt is measured and on the x-axis quantity of labor is measured.

Conclusion:

The total product curve will slope upwards.

c. Marginal product will decline with an increase in the number of workers:

The marginal product of the first labor is:

The marginal product of the second labor is:

The marginal product of the third labor is:

With an increase in the labor, marginal productivity will decline, so it can be said that with the working of each additional labor, it will be working with the smaller share of the fixed inputs.

Production of an additional labor will be less than the previous labor.

Conclusion:

Therefore, the marginal product of an additional labor will fall.

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Answer 5

Chapter 6, Problem 1P

To determine

Concept Introduction:

Fixed input: It is an input, which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable input: This input is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Marginal Product of Labor (MPL): It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force.

Here,

is the change in quantity.

is the change in labor.

Expert Solution & Answer

Explanation of Solution

a. Fixed input and variable input.

In this case, the fixed input are machines, refrigerator and yogurt.

Variable inputs are workers, toppings for sprinkling, cups, yogurt mix.

Conclusion:

There are three fixed inputs and the others are variable inputs.

b. Total Product curve:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 4
Fig 1

More quantity of frozen yogurt will be produced as more workers are employed so the total product curve will slope upwards.

Total product curve will start from the origin, on the y-axis quantity of frozen yogurt is measured and on the x-axis quantity of labor is measured.

Conclusion:

The total product curve will slope upwards.

c. Marginal product will decline with an increase in the number of workers:

The marginal product of the first labor is:

The marginal product of the second labor is:

The marginal product of the third labor is:

With an increase in the labor, marginal productivity will decline, so it can be said that with the working of each additional labor, it will be working with the smaller share of the fixed inputs.

Production of an additional labor will be less than the previous labor.

Conclusion:

Therefore, the marginal product of an additional labor will fall.

Answer 6

Chapter 6, Problem 1P

To determine

Concept Introduction:

Fixed input: It is an input, which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable input: This input is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Marginal Product of Labor (MPL): It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force.

Here,

is the change in quantity.

is the change in labor.

Expert Solution & Answer

Explanation of Solution

a. Fixed input and variable input.

In this case, the fixed input are machines, refrigerator and yogurt.

Variable inputs are workers, toppings for sprinkling, cups, yogurt mix.

Conclusion:

There are three fixed inputs and the others are variable inputs.

b. Total Product curve:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 4
Fig 1

More quantity of frozen yogurt will be produced as more workers are employed so the total product curve will slope upwards.

Total product curve will start from the origin, on the y-axis quantity of frozen yogurt is measured and on the x-axis quantity of labor is measured.

Conclusion:

The total product curve will slope upwards.

c. Marginal product will decline with an increase in the number of workers:

The marginal product of the first labor is:

The marginal product of the second labor is:

The marginal product of the third labor is:

With an increase in the labor, marginal productivity will decline, so it can be said that with the working of each additional labor, it will be working with the smaller share of the fixed inputs.

Production of an additional labor will be less than the previous labor.

Conclusion:

Therefore, the marginal product of an additional labor will fall.

Answer 7

Chapter 6, Problem 1P

To determine

Concept Introduction:

Fixed input: It is an input, which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable input: This input is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Marginal Product of Labor (MPL): It refers to the additional units of output, which is produced by employing an additional unit of labor in the current labor force.

Here,

is the change in quantity.

is the change in labor.

Answer 8

Expert Solution & Answer

Explanation of Solution

a. Fixed input and variable input.

In this case, the fixed input are machines, refrigerator and yogurt.

Variable inputs are workers, toppings for sprinkling, cups, yogurt mix.

Conclusion:

There are three fixed inputs and the others are variable inputs.

b. Total Product curve:

EBK ESSENTIALS OF ECONOMICS, Chapter 6, Problem 1P , additional homework tip 4
Fig 1

More quantity of frozen yogurt will be produced as more workers are employed so the total product curve will slope upwards.

Total product curve will start from the origin, on the y-axis quantity of frozen yogurt is measured and on the x-axis quantity of labor is measured.

Conclusion:

The total product curve will slope upwards.

c. Marginal product will decline with an increase in the number of workers:

The marginal product of the first labor is:

The marginal product of the second labor is:

The marginal product of the third labor is:

With an increase in the labor, marginal productivity will decline, so it can be said that with the working of each additional labor, it will be working with the smaller share of the fixed inputs.