I need explain answer question 5 4:34 D*3 all 100% I2.3 When the inputs price ratio (slope of cost line) is greater than the MRTS,(MPK/PK > MPL/PL) the producer should use .. to minimize the cost.A More labarC Mare labor and more capitalB More CapitalD| None of the above4 The optimal production methodA maximizes output regardiess of costC minimizes the normal rate of returnB| maximizes inputs.Dminimizes cost5. Refer to the information provided in the following figure, If this firm's cost of labor is$10 per unit, and the isocost line represents a total cost 2000. How much is the cost ofcapital per unit?100q-300-200-100200Units of laborLinits of capital

Total cost is the cost incurred for the production of goods and services. TC = wL + rK

5. Refer to the information provided in the following figure, If this firm's cost of labor is $10 per unit, and the isocost line represents a total cost 2000. How much is the cost of capital per unit? 100 -300 200 -100 200 Units of labor des on

5. Refer to the information provided in the following figure, If this firm's cost of labor is $10 per unit, and the isocost line represents a total cost 2000. How much is the cost of capital per unit? 100 -300 200 -100 200 Units of labor des on

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

See similar textbooks

Related questions

Q: 1. True of False: if false, please explain why a. A firm with a small labor force typically…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Fill in the blanks in the following table and then answer the question that follows. (Note: Round…

A: Marginal Product = Change in Total Product / Change in Input Average Product = Total Product / Units…

Q: 8. Consider Meera's ice-cream shop with: Marginal Product of Capital: 6000 scoops/ice-cream maker…

A: The producer equilibrium is a situation where the combination of cost and production brings the…

Q: 5- A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and…

A: The data presented In the question above is as follows:- Per hour money paid to servers = $5 Rent…

Q: 3. Consider the following production function: q = 2L +3/K Assume K = 16, derive the marginal…

A: production-function gives us the maximum output that can be achieved with various…

Q: 3. Determined whether each statement is true or false and provided an explanation. A. If a firm has…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Q: 2. You are thinking to start your food catering business by making rolled tacos, which are often…

A: Marginal cost is the additional cost occurred when one additional unit of goods is produced . And…

Q: 3. For each graph given below is it possible that the solid curve is the short-run average cost…

A: Cost curve: A cost curve is a graph of production costs as a function of total quantity produced.…

Q: The price of labor is $20 per unit and the price of capital is $40 per unit. Optimal input…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: 3. A firm uses labor and capital to produce an output. The hourly cost of labor is 10 and the hourly…

A: As per the guidelines, we are allowed to answer the first question only in case of multiple…

Q: 25. Molly operates a factory with a production function given by Q(K, L.) = L+ 4K, where K is…

A: The production function of a firm shows the maximum amount of output a firm is able to produce by…

Q: 13. You run a fried chicken restaurant in Kentucky and can hire labor at a wage of $2/hr in a…

A: Here, it is given that wage rate is $2/hr, which is the marginal cost and selling price is…

Q: The daily short-run costs for a parking lot are shown in the table below. a. Fill in the table,…

A: Fixed cost is the cost that remains same at all levels of output whereas variable cost is the cost…

Q: 22. A firm uses labor and capital, (L,K), to produce an output. The hourly cost of labor is $10, and…

A: The isocost line can be written as follows:

Q: Consider a pizza restaurant where ovens are a fixed input and workers are variable inputs. Assume…

A: Marginal physical product = change in quantity of output Marginal cost = change in total cost /…

Q: 1. Suppose that a producer has the following production function: -13 Where Q is output, and L and K…

A: A production function shows the relationship between input and output. it shows how much input is…

Q: 3)Consider the following table What is the total output when 2 labor are employed? Labour Total…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: 6. The cost that a firm incurs in hiring or purchasing any factor of production is referred to as A.…

A: The amount that is being paid by an individual for purchasing a good or service is known as cost.…

Q: 2. You are thinking to start your food catering business by making rolled tacos, which are often…

A: In the table given FC is missing but it is given in the question i.e $300. Therefore while…

Q: abor Total Product Marginal Product 1 2 2 2 6 A 3 B 6 4 16 4 5 18 C 6 D 0

A: Answer to the question is as follows :

Q: Table 1 below, shows the output of 6 machinists in the sewing section of the business on a daily…

A: Marginal Product is the additional output produced by using additional inputs. Average Product is…

Q: Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent…

A: "Implicit costs refer to the opportunity costs i.e. the cost of resources which the business owns…

Q: 6. The relationship between marginal physical product and margınal cost Hubert's Big Burger is a…

A: Marginal product is the additional output that is generated when one more unit of the variable input…

Q: 1. Assume that Ms. Desdimona, the owner, and manager of the Fine Duplicating Service located near…

A: The total product is the total quantity of output produced by using all the inputs and resources.…

Q: Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the…

A: The costs incurred by a firm operating in a competitive market included fixed costs and variable…

Q: 200 160 Average and Marginal Product 80 40 MP AP 0 10 20 30 40 50 Labor In the figure above, the…

A: The cost per output unit is known as the average cost. The average cost may be calculated by…

Q: 5. Consider the following daily production data for Davis Golf Balls, Inc. Davis Golf Balls, Inc.…

A: Labor demand is characterized as how much labor that employers look to enlist during a given time…

Q: uppose A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but…

A: When MC = AVC, we know that MP = AP MP = dX/dL = - 0.6L2 + 36L + 1620 AP = X/L = - 0.2L2 + 18L +…

Q: 2. The short-run production function for a manufacturer Number of Workers (Quantity of Labor) 1. 2.…

A: Given Quantity of labor The total output of DVD Drives 1 0 2 42000 3 90000 4 135000 5…

Q: Quantity of Labor workers) Total Product (units er hour) 0 1234 56 0 259 15|18 17 he table above…

A: Marginal product of labor refers to change in total output when one more unit of labour is hired.

Q: 3. Problems and Applications Q4 Nimbus, Inc., makes brooms and then sells them door-to-door. Here is…

A: Fill in the column for the MC in the previous table: Answer: In the above table the figures are…

Q: 6. Nimbus Ltd. makes brooms and then sells them door to door. Here is the relationship between the…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Q.1. Pak surgical makes masks and then sells them on door to door. Here is the relationship between…

A: Since multiple sub-parts are asked here, we will answer the first three parts for you. If you want…

Q: In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The…

A: Total Labor Cost = Units of Labor * Wage Rate Marginal Resource Cost = Change in Total Labor Cost /…

Q: 5. What is the average product of labor, given that the level of labor equals 10, total outout…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Labor (workers) Output 0. 1 20 50 70 4 80 85 The table shows daily output for small pizzeria based…

A: Given: Fixed costs=$20 Labor costs=$40 per worker

Q: The Paunch Burger restaurant chain currently produces 250,000 units of output by using 2,400 units…

A: Marginal rate of technical substitution = - Change in capital / Change in labor

Q: . In the Deep Creek Mining Company example described in this chapter (Table 7.1),suppose again that…

A: The link between the quantity of productive inputs (such as labour and capital) used and the amount…

Q: 3. We often work with production technologies that give rise to initially increasing marginal…

A: Production technologies or production function defines a relationship between the output and inputs.…

Q: 2. Define marginal physical product of labor (MPP) and marginal cost of product (MC). How are these…

A: The production function shows the technical relationship between input factors and final output. The…

Q: 3. We often work with production technologies that give rise to initially increasing marginal…

A: Marginal Product:Marginal product refers to the change in output due to the change in inputs.…

Q: Labor Output (units per week) (workers per week) 1. 20 50 3 70 4. 85 5. 95 6. 100 The table above…

A: Marginal cost: - marginal cost is the cost incurred in the production of an additional quantity of…

Q: Output Marginal Labor (Q) Product 20 1 20 50 2 100 10 5 130 6 135 In the table above, what is…

A: A production function illustrates the relationship between the inputs used and the output produced…

Question

I need explain answer question 5

4:34 D
*3 all 100% I
2.
3 When the inputs price ratio (slope of cost line) is greater than the MRTS,
(MPK/PK > MPL/PL) the producer should use .. to minimize the cost.
A More labar
C Mare labor and more capital
B More Capital
D| None of the above
4 The optimal production method
A maximizes output regardiess of cost
C minimizes the normal rate of return
B| maximizes inputs.
Dminimizes cost
5. Refer to the information provided in the following figure, If this firm's cost of labor is
$10 per unit, and the isocost line represents a total cost 2000. How much is the cost of
capital per unit?
100
q-300
-200
-100
200
Units of labor
Linits of capital

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Total cost

VIEW

Cost of capital

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the difference between a fixed input and a variable input?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?