Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134643175
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 6, Problem 7E
To determine
To determine the marginal product of capital.
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Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
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- What is the difference between a fixed input and a variable input?arrow_forwardWhat is a production function?arrow_forwardProduction function Q=100K^0.5L^0.5 .During the last production of Tyres the following inputs of 100 and 25 for capital and labor were used.What is the marginal product of capital and marginal product of labor based on the stated inputs.arrow_forward
- If the marginal product of labor is 25 and the marginal product of capital 10, what is the marginal rate of technical substitution of labor for capital?arrow_forwardWe are in a short period, work is therefore the only variable production factor. The production function is therefore only a function of work Q = f(L) The following table gives us the level of production achieved according to the number of work units used. 110 Unités de travail 0 1 2 3 4 5 6 7 8 9 10 Unités de production 0 20 40 65 79 90 98 103 103 102 97 1. Calculate total, average and marginal productivities. Do a painting. 2. Plot, on the same graph, the total productivity curves, average and marginal. Comment.arrow_forwardWhat is the average product of labor, given that the level of labor equals 10, total output equals 1200, and the marginal product of labor equals 200? Suppose the production function is given by Q= K + 2L. What is the average product of capital when 5 units of capital and 2 units of labor are employed?arrow_forward
- Nonearrow_forwardSay the marginal product of labour in production is 4 and the average product of labour is 7. Then, increasing the amount of labour used in production will lower the average product of labor. True Falsearrow_forwardQuestion 7 The production function is f(x1, x2) = x¹/²₁x¹/22. 1X a. In the short run the amount of factor 2 (x2) is 100 units. Write down the short run production function and draw a graph of it with output on the vertical axis and the amount of factor 1 on the horizontal axis. b. How does the marginal product of x1 in the graph you drew in a) change with the amount of x₁? Discuss what you observed in the graph that helped you to determine your answer. Write out the equation for an iso-profit line and add it to the graph you drew in part (a). Show how you derive the iso-profit line from a profit function that depends on output (y) and the amount of the inputs (x1 and x2). d. If the price of factor 1 is $10, the price of factor 2 is $15, and the price of output is $20, what is the short run profit maximizing choice of x₁? (The marginal product of factor 1 is 5 1/2 You will need to use this information to solve for the answer to c.) How did you know that this was the answer? Use the…arrow_forward
- Use the information in the table to answer the two questions that follow about Monster's Ink, a tattoo shop. Number of workers Tattoos completed Marginal product 0 1 0 8 18 25 4 28 5 30 6 31 What is the marginal product of the fourth tattoo artist? 2 3 marginal product: N/A 8 10 7 2 1 tattoos Which of the following best describes the economic reasoning behind the fact that the marginal physical product of labor declines as more labor is employed, with other inputs held constant? Monster's Ink is experiencing negative returns because hiring the third worker increases tattoo output less than hiring the fourth worker. O The tattoo shop is experiencing increasing returns because its total tattoo output increases each time a new worker is hired. Monster's Ink is experiencing diminishing returns, possibly caused by three workers getting in each other's way and needing to share tools (after sanitization, of course). There is no rational reason for tattoo output to change as it does.arrow_forwardConsider a production process where flowers are grown (the output) using gardeners (labor) and greenhouses (capital). The quantity of flowers grown per day with various combinations of labor and capital are shown in the table. Fill in the marginal product of labor in the table below. (Enter your responses as integers).arrow_forwardConsider the following production function: Q = (6L + 3K)¹/2 1. What is the Marginal Product of Labor (MPL)? What is the Marginal Product of Capital (MPK)? Are they diminishing? 2. What is the Average Product of Labor (APL)? What is the Average Product of Capital (MPK)? 3. What is the TRSL,K? Is the absolute value of TRSLK diminishing in L or K? 4. Are there constant, decreasing, or increasing returns to scale?arrow_forward
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