Consider 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 andcapital are shown in the table below.Suppose that each gardener is paid $180 per day and the greenhouse is rented for $300 per day.Fill in total cost in the table below. (Enter your responses as integers.)Etext pagesGet more helpLaborCapitalOutputTotal Cost0101112023604804554057080a01F2F3F4F5F6&Clear allCheck answerADII4F7F8F9F10F11F12*delete

Approach to solving the question:1. Define the costs involved in production: labor and capital.2.…

Answered: Consider a production process where…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 18PAE

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Would you consider an interest payment on a loan to a film an explicit or implicit cost?
4. Omi Sushi uses waiters H and robots K to produce orders Q. The firm production function for Omi Sushi is Q(H, K) = H + 4K (2) -Suppose that the government mandates that Omi can only produce Q = 20 meal orders per day. Substitute 20 in for Q and rearrange the firm production function so that H is a function of K. -Where does Omi Sushi produce at Q = 20 at minimal cost? Label the point on your graph. From this point, determine the amount of labor H and capital K at which it maximizes profit.
For a firm to maximize profit, it must minimize the cost of producing whatever quantity it produces. Use the isocost and isoquant tools to present a firm that is choosing the optimal levels of labor and capital (i.e., tools) to produce a certain quantity and a certain cost. Then, show in your diagram how this firm would respond if it were to expand and spend more on its inputs, assuming it is best for the firm to become more “capital intensive” as it grows. Comment on WHY a firm might best become more capital intensive as it expands, even when the relative prices of labor and capital remain unchanged.
***There are FOUR parts to the question, all based around the same given data...please answer and explain each and note where graphs are needed*** Given: A farmer raises apples using land (K) and labor (L), and has an output of ?(?,?)= ?0.5?0.5 bushels of apples. a. Find several input combinations that give the farmer 6 bushels of apples. Sketch the associated isoquant on a graph, with L on the x-axis and K on the y-axis. b. In the short run, the farmer only has 4 units of land. What is his short-run production function? Graph it for values of L from 0 to 16, with L on the x-axis and output on the y-axis. What is the name of the slope of this curve? c. Assuming the farmer still only has 4 units of land, how much extra output does he get from adding 1 extra unit of labor if he is already using only 1 unit of labor? How much extra output does he get from adding 1 extra unit of labor if he is already using 4 units of labor? d. In the long run, the farmer can change both his…
A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught: Hours Quantity of Fish (Pounds) 0 0 1 11 2 20 3 25 4 28 5 30 Complete the following table with the marginal product of each hour spent fishing. Hours Quantity of Fish Marginal Product (Pounds) (Pounds) 0 0 1 11 2 20 3 25 4 28 5 30 Graph #1 On the following graph, use the blue points (circle symbol) to graph the fisherman's production function. (graph #1 blue point = Prodution function) The production function becomes ( flatter , steeper ) ? as the number of hours spent fishing increases. The fisherman has a fixed cost of $12 (his pole). The opportunity cost of his time is $6 per hour. Graph #2 On the following graph, use the green points (triangle symbol) to graph the fisherman's total-cost curve at the following quantities of fish: 0, 11, 20, 25, 28,…
Explain how input, output and cost are interrelated
Consider 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 below. Suppose that each gardener is paid $180 per day and the greenhouse is rented for $300 per day. Fill in total cost in the table below. (Enter your responses as integers.) Labor Capital Output Total Cost 0 1 0 $ 1 1 80 2 1 240 3 1 320 4 1 360 5 1 380
In your city , each police officer has a budgetary cost of $40000 per year. The property loss for each burglary is $4000. The first offecer hired will reduce crime by 40 burglaries and each additional officer will reduce crime by half as much as the previous one. How many officers should the city hire ? Illistrate with a graph with a marginal benifit curve and a marginal cost curve Can someone answer this correctly with an MC and MB graph? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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1. The production function for the personal computers of DISK, Inc., is given by q = 10K0.5L0.5,where q is the number of computers produced per day, K is hours of machine time, and L ishours of labor input. DISK’s competitor, FLOPPY, Inc., is using the production function q = 10K0.6L0.4. a. If both companies use the same amounts of capital and labor, which will generatemore output?b. Assume that capital is limited to 9 machine hours, but labor is unlimited in supply. Inwhich company is the marginal product of labor greater? Explain.
Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $20/month. Producing q gallons of honey in one month requires spending 5q dollars bees, and 4q2 dollars on sugar. (a) What is the total cost of producing q units of honey for an individual honey producer in a given month? (b) In general, if the total cost of producing honey is a + bq + cq2, then the marginal cost of producing honey is b + 2cq. Assuming each honey producer operates as a price-taker, what is the monthly supply curve for an individual producer? (c) Let Q be the total market supply, and q is the supply of an individual firm. Therefore, q = Q/n where n is the total number of firms in the market. Suppose the demand for honey is given by Q = 512-4P. Also, suppose there are 50 honey producers in the market. What is the equilibrium price of honey? (d) How much profit does an individual producer make in a month? Is this a long-run equilibrium? If the…

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