Activity 2: My Production! Directions: Below is the production schedule for Output X with variable labor input. Compute the marginal product and average product in each labor input. Production Schedule for Output X with Variable Labor Input Quantity of Labor Total Marginal Average Input Product Product Product 1 10 10 2 22 44 11 3 37 12-33 4 55 13.75 5 69 13-8 6 77 12-83 7 80 11-43 8 81 10-12 9 81 10 9 8 80

Activity 2: My Production! Directions: Below is the production schedule for Output X with variable labor input. Compute the marginal product and average product in each labor input. Production Schedule for Output X with Variable Labor Input Quantity of Labor Total Marginal Average Input Product Product Product 1 10 10 2 22 44 11 3 37 12-33 4 55 13.75 5 69 13-8 6 77 12-83 7 80 11-43 8 81 10-12 9 81 10 9 8 80

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

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15. A firm can use three different production technologies, withcapital and labor requirements at each level of output as follows:TECHNOLOGY 1 TECHNOLOGY 2 TECHNOLOGY 3DailyOutputK L K L K L100 3 7 4 5 5 4150 3 10 4 7 5 5200 4 11 5 8 6 6250 5 13 6 10 7 8a. Suppose the firm is operating in a high-wage country, wherecapital cost is $100 per unit per day and labor cost is $80 perworker per day. For each level of output, which technologyis cheapest?b. Now suppose the firm is operating in a low-wage country,where capital cost is $100 per unit per day but labor cost isonly $40 per unit per day. For each level of output, whichtechnology is cheapest?c. Suppose the firm moves from a high-wage to a low-wagecountry but its level of output remains constant at 200 units
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