If the firm is operating in a high wage country, where capital cost $150 per unit and labor cost $100 per worker, which technology minimize the production cost ? Select one O a all O b. Technology 3 O c Technology 2

If the firm is operating in a high wage country, where capital cost $150 per unit and labor cost $100 per worker, which technology minimize the production cost ? Select one O a all O b. Technology 3 O c Technology 2

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 41P: Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72...

See similar textbooks

Related questions

Q: Green Bank employs three loan officers, each working eight hours per day. Each officer processes an…

A: Productivity is the measurement of output quantity based on the input quantity of the production…

Q: he marginal cost of driving a mile is $0.33. (Round your response to two decimal places) an deciding…

A: The answer is as follows:-

Q: introduces new techniques or methods so that firms can produce more output per unit of input. O a)…

A: New techniques and methods helps in the increase in output per unit of input i.e. the production…

Q: 2. Suppose the wage rate for labor is S30 an hour and the rental rate for capital is $50 per hour.…

A: Answer a. The isocost line is as follows: Amount of labor firm can purchase= 1500/30…

Q: The following does not seem to be belonging to the Asian marketplace, other than Japan. O a.…

A: Japan is famously known to home to high-skilled labor.

Q: 5) Arswer the following questions based on the graph below: a)From point A to B and from B to C, is…

A: [a]From point A to B and from B to C, overall production is risingL rose from 80 to 140 to 280…

Q: c. Suppose the firm moves from a high-wage to a low-wage country but its level of output remains…

A: The total cost can b calculated as follows. The below table shows the total cost for different…

Q: The table shows the daily production of Papaya Co., that supplies papayas to hotels and restaurants…

A: Given Number of workers (L) Total Product (TP) 0 0 5 1500 10 4500 15 10500 20 18000…

Q: A lawn service company has the following production possibilities. With one, two, three, and four…

A: MPL = Change in Q / Change in L When L = 2, MPL = (9 - 4) / (2 - 1) = 5 When L = 3, MPL = (12 - 9) /…

Q: QUESTION 10 If a Cobb Douglas technology (with factors having strictly positive marginal product)…

A: Cobb Douglas's production function depicts the technological relationship between the amount of…

Q: Total product (meals per hour) 24 20 TP 16 12 4 2 3 5 Quantity of labor (workers) The figure shows…

A: Total product shows the relationship between output produced and number of input hired.

Q: Which of the following does not change with the level of output? O Marginal cost O Total fixed cost…

A: Marginal cost is the change in total cost with respect to change in output. Average Fixed cost is…

Q: Which type of cost does depend on a firm's output? Select one: O A. marginal cost O B. total cost O…

A: Fixed cost is the cost that is incurred on fixed factors and does not change with the level of…

Q: 64. In the video, which LRATC represented a larger scale of plant? Select one: O a. LRTC 5 O b. LRTC…

A: Natural Monopoly: The natural monopoly is the type of monopoly where a very high startup cost is…

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: 4. An iso-quant gives: O Combinations of output that can be produced using different levels of…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first…

Q: Firm XYZ produces specialty widgets using labor and capital. The table below shows the productivity…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: 7 Output for a simple production process is given by Q- KL, where K denotes capital and i denotes…

A: Here, given information is: Price of labor (PL)= $10 Price of capital (PK)= $2 Marginal product of…

Q: Which of the following statements is not correct? Select one: O a When MC is below AVC,…

A: The MC cuts the AVC at the minimum point of AVC. The production function shows the relationship…

Q: In the short run, when marginal product is positive and increasing O a. stage 1 production O b.…

A: Decreasing but still positive marginal returns characterise Stage II's short-run production. The…

Q: The production function for Good X: AP OAK) Marginal Pruduct of Capital AP, OK Average Product ol…

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

Q: Which of the following is CORRECT? Select one: O a. If a firm is technologically efficient, it is…

A: A firm is said to be technically efficient when it uses few inputs as possible for production and…

Q: a. What is the least-cost combination of labor and capital the firm should employ in producing 80…

Q: Productivity is O A. the value of profit divided by the number of production workers O B. the value…

A: Hello, thank you for the question. Since there are multiple questions asked here, only the first…

Q: The relationship between the factors of production and the output of goods and services. O a.…

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

Q: You own a nice landed house near Xiamen University Malaysia campus. In Jan 2021, you decide to lease…

A: Opportunity cost refers to foregone income that could have been earned if resources were invested…

Q: 3. Suppose a KL; the price of capital is $10 and the price of labor $15. What combination of labor…

A: F (K,L) = KL2 -------> Production function Price of capital (r) = $10 Price of labor (w) = $15…

Q: Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a…

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

Q: What does a business' labour-demand curve represent? Select one: O a. the quantity of labour…

A: The labor market illustrates how the equilbrium wage rate and quantity of labor are determined by…

Q: From the table below, if you know that each labor price (Wage) = (5$) and each capital price = (2$):…

A: Production technology signifies the method used by a firm in carrying out its production activity.…

Q: The GPA you earn in a particular semester is your GPA, and your cumulative GPA for all completed…

A: In economics, marginal analysis is used to examine the additional benefits or costs of an activity.…

Q: Refer to Table 1-1. Using marginal analysis, how many hours should Eva extend her bakery's hours of…

A: Hours of operation depend on profit-maximizing situation. here we calculate the given by following…

Q: PLEASE ONLY C. A firm can use three different production technologies, with capital and labor…

A: Hello, thank you for the question. Since the subpart 'c' is incomplete, only the first two sub-parts…

Q: This is a think and explain question. No math for this one. Suppose that the production function q…

A: Given: Production function: q=f(L,K) If, L=3 K=5 Output is: q=10

Q: hich 2 of the following statements are correct? elect one or more: O a. The higher capital per…

A: Production function shows how with increases in the input the output increases. It gives the…

Q: Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's…

Q: 31. Hannan's pizza shop currently produce 100 pizzas per day and sells them for a profit. She is…

A: Hannan's pizza shop is currently producing 100 pizzas per day and is selling them for a profit. She…

Q: The marginal product of labour curve intersects the average product of labour curve from above…

A: Here Answer is "Between 4 and 5"

Q: the early nineteenth century. 1.8 1.4 Wages relative to the cost of capital 5 0.9 England France 0…

A: Isocost lines denote the different combinations of the inputs that can be used to produce different…

Q: Capital (K) Q= 100 Labor (L) The firm's optimization problem is to minimize total cost for a given…

A: Cost of production is minimized at the point of tangency of isocost and isoquant curves.

Q: Output Labor (units per day) (workers per day) 0. 0. 10 1 15 18 3 20 4 21 Cindy's Sweaters'…

A: Total cost(TC) is obtained by the sum of TFC(total fixed cost) and TVC(total variable cost). TFC…

Q: PPF is based on Select one: a. Indirect cost O b. Opportunity cost c. Variable cost O d. Fixed cost

A: The production possibility frontier (PPF) the combination of two goods and services which can be…

Q: MC ATC AVC 10 20 30 40 50 60 70 80 90 100 Quantity (gallons of ice cream per hour) Based on the…

A: Marginal product of labor refers to the additional output obtained by increasing one more unit of…

Q: hire any more workers? She estimates that the additional workers would generate th following output.…

A: Workers hired Total Product Average Product Marginal Product 0 0 -- -- 1 12 12 12 2 22 11 10…

Q: 2. Consider the following graphical presentation on optimal combination of a firm: Capital Construct…

A: The curve which connects the point of optimal or most efficient quantities of 2 factors of…

Q: The following table shows the production possibilities for the country of Erewhon: A CDEF Wine 10 18…

A: Opportunity cost is defined as the cost of the alternative opportunity given up. Since the resources…

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: What are the items that make opportunity cost differ from the accountant's measure of cost? A firm's…

A: A firm's opportunity cost is the cost foregone in terms of the next best alternative to pursue the…

Q: QUESTION 5 Timothy own a Subway franchise. He used flour, oil, seasoning and oven to bake the bread…

A: Factors of production: - The inputs that are used to produce goods and services are known as the…

Q: Explain intuitively what might cause the marginal product of labor to become negative. The marginal…

A: The correct answer is C. If workers get in each others way there would be a time where the…

Question

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

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

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

Small Mom and Pop firms, like inner city grocery stores, sometimes exist even though they do not earn economic profits. How can you explain this?
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.
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?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
How does fixed cost affect marginal cost? Why is this relationship important?
What is a production technology?
What is die difference between accounting and economic profit?
What shapes would you generally expect a total product curve and a marginal product curve to have?
Are fixed costs also sunk costs? Explain.
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
What is the marginal cost of labor?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?