Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily filled in sequentially. Instructions: Enter your answers as a whole number. If you are entering any numbers in thousands, such as "1000," do not use a comma separator in your answer. Labor 0 10 20 30 40 50 60 Total Output 0 500 2,000 8,000 18,000 Average Product 0 50 150 200 250 Marginal Product 0 50 150 250 450

Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily filled in sequentially. Instructions: Enter your answers as a whole number. If you are entering any numbers in thousands, such as "1000," do not use a comma separator in your answer. Labor 0 10 20 30 40 50 60 Total Output 0 500 2,000 8,000 18,000 Average Product 0 50 150 200 250 Marginal Product 0 50 150 250 450

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively.13) Refer to Scenario 7.7. Diminishing returns to labor set in with the ________ worker.A) first B) second C) third D) fourth14) Refer to Scenario 7.7. The average product of labor with four workers isA) 3. B) 3.5. C) 4. D) 14.15) If the marginal product of labor is less than the average product of labor, then theA) marginal product must be increasing. B) average product must be decreasing.C) marginal product must be decreasing. D) Both B and C
What is task definition (as a situational variable)?Give an example of how it can influence theconsumption process.
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
Owner owns a pizza shop with a single employee. If employee works x hours, he can produce sqrt x pizzas.Each pizza sells for £6. cost to employee of working x hours is c(x)=x. If emplyee can enjoy £5 from staying at home and no effort. How much would he have to receive from owner for producing effecient amount of pizzas? a)14 b)36 c)27 d)42 e)9
Geralt works for Stregobor as a witcher earning $87,000 a year. He decides to quit his job andbecome a freelance witcher. As a freelancer, he spends $7000 on herbs and weapons. Insurancecosts him $1000 a year. He pays himself $145,000 as a salary. His total revenues for the year are$191,000. Based on this information, what were his economic costs as a freelance witcher?
From Table 6.4, (a) find the AP and the MP of labor. Labor 0 1 2 3 4 5 6 7 8 9TP 0 2 5 9 12 14 15 15 14 12
b. Five Sales Executives have been told by their company Heavy Machines Limited (HML) that eachsales executive, will be relocated to work at one of five branches of their company, in theCaribbean. The cost to relocate a sales executive at each of the five branches is shown in Table 8below: SalesExecutiveBranchJamaica Antigua/Barbuda Trinidad&TobagoBarbados St. LuciaZenk Murt $2,550 $2,300 $ 2,700 $2,300 $2,400Rangle Tang $2,400 $2,700 $2,800 $2,600 $2,400Atil Heglam $2,600 $2,400 $2,700 $2,500 $2,400Justop Brelim $2,400 $2,500 $3,000 $2,400 $2,500Mesk Lathim $2,400 $2,300 $2,500 $2,800 $2,700 The costs shown in Table 8, are in Eastern Caribbean (EC) dollars. (i) Determine the optimal relocation of the five Sales Executives.
(TCO C) You have been hiredto manage a small manufacturing facility whose cost and productiondata are given in the table below.No. of workers Total LaborCost Output TotalRevenue 1 $150 100 $170 2 300 108 550 3 450 114 1150 4 600 119 1470 5 750 123 1600 6 900 125 1700 7 1050 126 1750 Based on your knowledge of marginal analysis, how manyworkers should you hire? Explain youanswer.
city is trying to estimate the most money it should offer to contractors as an incentive for them to finish a disruptive road project early. The transportation project lengthens transport times by 10 hours per week for 40,000 workers. Assume that all workers are paid $10 per hour in a perfectly competitive labor market. What is the most that the city should pay to the contractors as an incentive for completing the project four weeks early
A small manufacturing plant makes three types of inflatable boats: one person, two-person,and four-person models. Each boat requires the services of three departments, as listed in thetable. The cutting, assembly, and packaging departments have available a maximum of 380,330, and 120 labor-hours per week, respectively.Department One-PersonBoatTwo-PersonBoatFour-PersonBoatCutting 0.5 hr 1.0 hr 1.5 hrAssembly 0.6 hr 0.9 hr 1.2 hrPackaging 0.2 hr 0.3 hr 0.5 hra) Calculate how many boats of each type must be produced each week for the plant tooperate at full capacity.b) Calculate how is the production schedule in part (a) affected if the packagingdepartment is no longer used.c) Calculate how is the production schedule in part (a) affected if the four-person boat isno longer produced
The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed: Crew size 2 3 4 5 6 7 8 9 10 11 12Fish caught (100 lbs/week) 3 6 11 19 24 28 31 33 34 34 33 b) How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught?c) How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per person?d) Suppose the owner can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $150 per week. Assuming that the owner of the trawler is interested in maximizing profits, determine the optimal crew size.
The following is cost information for the Creamy Crisp Donut Company:Entrepreneur's potential earnings as a salaried worker = $50,000Annual lease on building = $22,000Annual revenue from operations = $380,000Payments to workers = $120,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Refer to the data. Creamy Crisp's implicit costs are: A. $150,000 B. $94,000 C. $136,000 D. $156,000