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:

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:

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

The marginal product of the second labor is:

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

The marginal product of the third labor is:

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

Wolfgang is a typical producer in a perfectly competitive piano industry (i.e., all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long run as well as the short run. Fixed costs (rent) are unrecoverable in the short run and are equal to $2400 per month. Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per piano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per piano is less than OA. $3000. B. $4000. O C. $5000. ○ D. None of the above. Pianos (Q) Hours (L) Raw Materials ( 0 0 0 1 100 1000 2 150 2000 3 240 3000 4 400 4000

P2 P₁ $ per unit Using the graph below, determine which statement is TRUE. MC1 SRATC₁ Q1 Q₂ MC2 SRATC2 LRAC ✓ LEA Quantity

Using the grapns below, wnicn snow the snort-run cost curves for 3 perfectly competitive firms in the same industry, determine whether the industry is in long-run equilibrium or not. Q Q Firm A QA MC ATC Output Firm B QB MC ATC Firm C MC ATC Output Output Qc If Firms A, B and C are in the same industry, is this industry in long-run equilibrium? ○ A. Yes, because P = MC = MR for each of the 3 firms. ○ B. No, because Firm A is not producing at a profit-maximizing level of output. ○ C. Yes, because all 3 firms are producing at their minimum average total cost. OD. The answer is uncertain since it's unknown whether the firms are producing at the minimum efficient scale or not. ○ E. No, because if the industry were in equilibrium, all 3 firms would be earning zero economic profits.

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:

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:

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:

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:

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:

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:

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.