To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

Question

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Answer 1

Question

Chapter 7, Problem 1E

a)

To determine

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

a)

Expert Solution

Explanation of Solution

Labor input L	Total product TP	Marginal product MP	Average product AP
1	3	-	3
2	6	3	2
3	16	10	5.33
4	29	13	7.25
5	43	14	8.6
6	55	12	9.16
7	58	3	8.28
8	60	2	7.5
9	59	-1	6.5
10	56	-3	5.6

From the given data Average Product, Total Product, and marginal product has been calculated. Capital is set at 500. The total product is production, the marginal product contributes to the overall output, and the average labor product is the overall labor dividedproduct. Thus from 1-6 shows increasing rate, decreasing rate from 6-8 and negative rate of production from 9-10.

Economics Concept Introduction

Introduction: Production functions play a significant role in determining the price of the output. It helps the producer to calculate how much inputs are needed to generate a particular amount of output. So, the producer can make decision based on cost minimization.

b)

To determine

To ascertain the total product, marginal product and average product functions.

b)

Expert Solution

Explanation of Solution

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List), Chapter 7, Problem 1E

Economics Concept Introduction

Introduction: Development is aimed at producing goods and services that satisfy people's needs as per their demand. Four considerations for goods and services development are as follows: land and other natural resources, such as water, trees, minerals etc.

c)

To determine

To evaluate the boundaries of the three stages of production.

c)

Expert Solution

Explanation of Solution

Stage 1 from point 0-5 shows increasing rate in total production of output, stage 2 from point 5-9 shows decreasing rate in total production and in the stage 3 from point 9-11 shows negative rate in total production of output.

Economics Concept Introduction

Introduction: Economists accept three distinct stages of development identified by a principle known as the law of rising marginal returns. This law states that if you add more workers to the manufacturing process, the output will increase but the scale of that increase will be smaller for each worker.

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Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph TPL, APL, and M PL. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (iii) the maximum value of MPL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…

Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph T PL, APL, and MPt. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (ii) the maximum value of M PL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…

. In the Deep Creek Mining Company example described in this chapter (Table 7.1),suppose again that labor is the variable input and capital is the fixed input. Specifically, assume that the firm owns a piece of equipment having a 500-bhp rating.a. Complete the following table: b. Plot the (i) total product, (ii) marginal product, and (iii) average productfunctions.c. Determine the boundaries of the three stages of production.

Answer 2

Question

Chapter 7, Problem 1E

a)

To determine

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

a)

Expert Solution

Explanation of Solution

Labor input L	Total product TP	Marginal product MP	Average product AP
1	3	-	3
2	6	3	2
3	16	10	5.33
4	29	13	7.25
5	43	14	8.6
6	55	12	9.16
7	58	3	8.28
8	60	2	7.5
9	59	-1	6.5
10	56	-3	5.6

From the given data Average Product, Total Product, and marginal product has been calculated. Capital is set at 500. The total product is production, the marginal product contributes to the overall output, and the average labor product is the overall labor dividedproduct. Thus from 1-6 shows increasing rate, decreasing rate from 6-8 and negative rate of production from 9-10.

Economics Concept Introduction

Introduction: Production functions play a significant role in determining the price of the output. It helps the producer to calculate how much inputs are needed to generate a particular amount of output. So, the producer can make decision based on cost minimization.

b)

To determine

To ascertain the total product, marginal product and average product functions.

b)

Expert Solution

Explanation of Solution

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List), Chapter 7, Problem 1E

Economics Concept Introduction

Introduction: Development is aimed at producing goods and services that satisfy people's needs as per their demand. Four considerations for goods and services development are as follows: land and other natural resources, such as water, trees, minerals etc.

c)

To determine

To evaluate the boundaries of the three stages of production.

c)

Expert Solution

Explanation of Solution

Stage 1 from point 0-5 shows increasing rate in total production of output, stage 2 from point 5-9 shows decreasing rate in total production and in the stage 3 from point 9-11 shows negative rate in total production of output.

Economics Concept Introduction

Introduction: Economists accept three distinct stages of development identified by a principle known as the law of rising marginal returns. This law states that if you add more workers to the manufacturing process, the output will increase but the scale of that increase will be smaller for each worker.

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Answer 3

Question

Chapter 7, Problem 1E

a)

To determine

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

a)

Expert Solution

Explanation of Solution

Labor input L	Total product TP	Marginal product MP	Average product AP
1	3	-	3
2	6	3	2
3	16	10	5.33
4	29	13	7.25
5	43	14	8.6
6	55	12	9.16
7	58	3	8.28
8	60	2	7.5
9	59	-1	6.5
10	56	-3	5.6

From the given data Average Product, Total Product, and marginal product has been calculated. Capital is set at 500. The total product is production, the marginal product contributes to the overall output, and the average labor product is the overall labor dividedproduct. Thus from 1-6 shows increasing rate, decreasing rate from 6-8 and negative rate of production from 9-10.

Economics Concept Introduction

Introduction: Production functions play a significant role in determining the price of the output. It helps the producer to calculate how much inputs are needed to generate a particular amount of output. So, the producer can make decision based on cost minimization.

b)

To determine

To ascertain the total product, marginal product and average product functions.

b)

Expert Solution

Explanation of Solution

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List), Chapter 7, Problem 1E

Economics Concept Introduction

Introduction: Development is aimed at producing goods and services that satisfy people's needs as per their demand. Four considerations for goods and services development are as follows: land and other natural resources, such as water, trees, minerals etc.

c)

To determine

To evaluate the boundaries of the three stages of production.

c)

Expert Solution

Explanation of Solution

Stage 1 from point 0-5 shows increasing rate in total production of output, stage 2 from point 5-9 shows decreasing rate in total production and in the stage 3 from point 9-11 shows negative rate in total production of output.

Economics Concept Introduction

Introduction: Economists accept three distinct stages of development identified by a principle known as the law of rising marginal returns. This law states that if you add more workers to the manufacturing process, the output will increase but the scale of that increase will be smaller for each worker.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1E

a)

To determine

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

a)

Expert Solution

Explanation of Solution

Labor input L	Total product TP	Marginal product MP	Average product AP
1	3	-	3
2	6	3	2
3	16	10	5.33
4	29	13	7.25
5	43	14	8.6
6	55	12	9.16
7	58	3	8.28
8	60	2	7.5
9	59	-1	6.5
10	56	-3	5.6

From the given data Average Product, Total Product, and marginal product has been calculated. Capital is set at 500. The total product is production, the marginal product contributes to the overall output, and the average labor product is the overall labor dividedproduct. Thus from 1-6 shows increasing rate, decreasing rate from 6-8 and negative rate of production from 9-10.

Economics Concept Introduction

Introduction: Production functions play a significant role in determining the price of the output. It helps the producer to calculate how much inputs are needed to generate a particular amount of output. So, the producer can make decision based on cost minimization.

b)

To determine

To ascertain the total product, marginal product and average product functions.

b)

Expert Solution

Explanation of Solution

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List), Chapter 7, Problem 1E

Economics Concept Introduction

Introduction: Development is aimed at producing goods and services that satisfy people's needs as per their demand. Four considerations for goods and services development are as follows: land and other natural resources, such as water, trees, minerals etc.

c)

To determine

To evaluate the boundaries of the three stages of production.

c)

Expert Solution

Explanation of Solution

Stage 1 from point 0-5 shows increasing rate in total production of output, stage 2 from point 5-9 shows decreasing rate in total production and in the stage 3 from point 9-11 shows negative rate in total production of output.

Economics Concept Introduction

Introduction: Economists accept three distinct stages of development identified by a principle known as the law of rising marginal returns. This law states that if you add more workers to the manufacturing process, the output will increase but the scale of that increase will be smaller for each worker.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1E

a)

To determine

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

a)

Expert Solution

Explanation of Solution

Labor input L	Total product TP	Marginal product MP	Average product AP
1	3	-	3
2	6	3	2
3	16	10	5.33
4	29	13	7.25
5	43	14	8.6
6	55	12	9.16
7	58	3	8.28
8	60	2	7.5
9	59	-1	6.5
10	56	-3	5.6

From the given data Average Product, Total Product, and marginal product has been calculated. Capital is set at 500. The total product is production, the marginal product contributes to the overall output, and the average labor product is the overall labor dividedproduct. Thus from 1-6 shows increasing rate, decreasing rate from 6-8 and negative rate of production from 9-10.

Economics Concept Introduction

Introduction: Production functions play a significant role in determining the price of the output. It helps the producer to calculate how much inputs are needed to generate a particular amount of output. So, the producer can make decision based on cost minimization.

b)

To determine

To ascertain the total product, marginal product and average product functions.

b)

Expert Solution

Explanation of Solution

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List), Chapter 7, Problem 1E

Economics Concept Introduction

Introduction: Development is aimed at producing goods and services that satisfy people's needs as per their demand. Four considerations for goods and services development are as follows: land and other natural resources, such as water, trees, minerals etc.

c)

To determine

To evaluate the boundaries of the three stages of production.

c)

Expert Solution

Explanation of Solution

Stage 1 from point 0-5 shows increasing rate in total production of output, stage 2 from point 5-9 shows decreasing rate in total production and in the stage 3 from point 9-11 shows negative rate in total production of output.

Economics Concept Introduction

Introduction: Economists accept three distinct stages of development identified by a principle known as the law of rising marginal returns. This law states that if you add more workers to the manufacturing process, the output will increase but the scale of that increase will be smaller for each worker.

Answer 6

Chapter 7, Problem 1E

a)

To determine

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

a)

Expert Solution

Explanation of Solution

Labor input L	Total product TP	Marginal product MP	Average product AP
1	3	-	3
2	6	3	2
3	16	10	5.33
4	29	13	7.25
5	43	14	8.6
6	55	12	9.16
7	58	3	8.28
8	60	2	7.5
9	59	-1	6.5
10	56	-3	5.6

From the given data Average Product, Total Product, and marginal product has been calculated. Capital is set at 500. The total product is production, the marginal product contributes to the overall output, and the average labor product is the overall labor dividedproduct. Thus from 1-6 shows increasing rate, decreasing rate from 6-8 and negative rate of production from 9-10.

Economics Concept Introduction

Introduction: Production functions play a significant role in determining the price of the output. It helps the producer to calculate how much inputs are needed to generate a particular amount of output. So, the producer can make decision based on cost minimization.

Answer 7

Chapter 7, Problem 1E

a)

To determine

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

Answer 8

a)

Expert Solution

Explanation of Solution

Labor input L	Total product TP	Marginal product MP	Average product AP
1	3	-	3
2	6	3	2
3	16	10	5.33
4	29	13	7.25
5	43	14	8.6
6	55	12	9.16
7	58	3	8.28
8	60	2	7.5
9	59	-1	6.5
10	56	-3	5.6

From the given data Average Product, Total Product, and marginal product has been calculated. Capital is set at 500. The total product is production, the marginal product contributes to the overall output, and the average labor product is the overall labor dividedproduct. Thus from 1-6 shows increasing rate, decreasing rate from 6-8 and negative rate of production from 9-10.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Introduction: Production functions play a significant role in determining the price of the output. It helps the producer to calculate how much inputs are needed to generate a particular amount of output. So, the producer can make decision based on cost minimization.

Answer 13

b)

To determine

To ascertain the total product, marginal product and average product functions.

b)

Expert Solution

Explanation of Solution

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List), Chapter 7, Problem 1E

Economics Concept Introduction

Introduction: Development is aimed at producing goods and services that satisfy people's needs as per their demand. Four considerations for goods and services development are as follows: land and other natural resources, such as water, trees, minerals etc.

Answer 14

b)

To determine

To ascertain the total product, marginal product and average product functions.

Answer 15

b)

Expert Solution

Explanation of Solution

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List), Chapter 7, Problem 1E

Answer 16

b)

Expert Solution

Answer 17

b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Economics Concept Introduction

Introduction: Development is aimed at producing goods and services that satisfy people's needs as per their demand. Four considerations for goods and services development are as follows: land and other natural resources, such as water, trees, minerals etc.

Answer 20

c)

To determine

To evaluate the boundaries of the three stages of production.

c)

Expert Solution

Explanation of Solution

Stage 1 from point 0-5 shows increasing rate in total production of output, stage 2 from point 5-9 shows decreasing rate in total production and in the stage 3 from point 9-11 shows negative rate in total production of output.

Economics Concept Introduction

Introduction: Economists accept three distinct stages of development identified by a principle known as the law of rising marginal returns. This law states that if you add more workers to the manufacturing process, the output will increase but the scale of that increase will be smaller for each worker.

Answer 21

c)

To determine

To evaluate the boundaries of the three stages of production.

Answer 22

c)

Expert Solution

Explanation of Solution

Stage 1 from point 0-5 shows increasing rate in total production of output, stage 2 from point 5-9 shows decreasing rate in total production and in the stage 3 from point 9-11 shows negative rate in total production of output.

Answer 23

c)

Expert Solution

Answer 24

c)

Expert Solution

Answer 25

Expert Solution

Answer 26

Economics Concept Introduction

Introduction: Economists accept three distinct stages of development identified by a principle known as the law of rising marginal returns. This law states that if you add more workers to the manufacturing process, the output will increase but the scale of that increase will be smaller for each worker.

Answer 27

Ch. 7 - Prob. 1E Ch. 7 - Prob. 2E Ch. 7 - Prob. 3E Ch. 7 - Prob. 4E Ch. 7 - Prob. 5E Ch. 7 - Prob. 6E Ch. 7 - Prob. 7E Ch. 7 - Prob. 8E Ch. 7 - Prob. 9E Ch. 7 - Prob. 10E

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

To evaluate the value of total product and marginal product and average product of labor of the Dmining company in the given table.

Explanation of Solution

To ascertain the total product, marginal product and average product functions.

Explanation of Solution

To evaluate the boundaries of the three stages of production.

Explanation of Solution

Want to see more full solutions like this?

Chapter 7 Solutions