Oceanic Pacific decided to conduct a series of experiments to determine the amount of tuna that could becaught with different crew sizes. The results of these experiments follow.Number of Daily TunaFishermen Catch (Ib.)50110230045059066546.700725710a. Determine the point at which diminishing returns occurs.b. Stage 2 starts at the point where labor isc. The most technically efficient level of output is somewhere betweend. Stage 2 ends at the point where labor is

A production function represents the relationship between inputs and outputs. The law of diminishing…

caught with different crew sizes. The results of these experiments follow. Number of Daily Tuna Fishermen Catch (Ib.) 1 50 110 300 2 3 450 590 4 5 665 700 725 710 6. 8 9 a. Determine the point at which diminishing returns occurs. b. Stage 2 starts at the point where labor is c. The most technically efficient level of output is somewhere between d. Stage 2 ends at the point where labor is

caught with different crew sizes. The results of these experiments follow. Number of Daily Tuna Fishermen Catch (Ib.) 1 50 110 300 2 3 450 590 4 5 665 700 725 710 6. 8 9 a. Determine the point at which diminishing returns occurs. b. Stage 2 starts at the point where labor is c. The most technically efficient level of output is somewhere between d. Stage 2 ends at the point where labor is

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter11: Labor Markets

Section: Chapter Questions

Problem 1SQ

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A firm finds the following relationship between workers’ productivity and the amount that workers lose if they are fired. Workers are paid $500 per week at other firms and all jobs last 50 weeks. Dollars lost by workers as a result of being fired Improvement in productivity because workers work harder to avoid losing their jobs (extra dollars to profit to firm) 1,250 1,750 1,750 2,750 2,000 3,500 2,500 4,500 3,250 4,750 Dollars lost by workers Pain for workers lost if they do not have Improvement in productivity →B B-C= Profit Total: Loss of due to waiting Total Weekly amount (C) Total Weekly (b) Profit (b-c) 1,250 0 1250 1250/50=25 1,750 1,750/50=35 10 1,750 0 1750 1750/50=35 2,750 2,750/50=55 20 2,000 0 2000 2000/50=40 3,500 3,500/50=70 30 2,500 0 2500 3500/50=50 4,500 4,500/50=90 40 3,250 0 3250 32500/50= 65 4,750…
The technique used in management accounting to determine the change in profit associated with the cost or benefit of the next (or the marginal) unit is called
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