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- A firm has two variable factors and a productionfunction f(x1, x2) = 6x1/21X21/3. The price of its output is 3, the price of factor 1 is 3, and the priceof factor 2 is 2.– What is the optimal production output level?– What is the maximum profit-level?A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught: Hours Fish (pounds) 0 0 1 10 2 18 3 24 4 28 5 30 What is the marginal product of the 4th hour spent fishing? Question 8 options: 8 4 6 2A firm face the production function:Q=120L+200K-L2-2K2It can buy L at N5 a unit and K at N8 a unit with a budget of N70. Use any method ofyour choice to find the maximum output the firm can produce.
- The fisherman caught 40 kilogram of fish by fishing for 3 hours while he caught 60 kilogram for fishing for 2 hours. What is the marginal productivity of increasing the fishing hours from 2 to 3 hours? A. 20 B. 30 C. 40 D. 60 E. no correct answerSuppose a firm faces the following average and marginal products of labor: APL = 200 + 5L - 0.08L2 MPL = 200 + 10L - 0.24L2 At what value of labor does Stage II of production begin?12. The number of repairs produced by a computer repair shopdepends on the number of workers as follows:NUMBER OF WORKERS NUMBER OF REPAIRS(PER WEEK)0 01 82 203 354 455 526 577 60Assume that all inputs (office space, telephone, and utilities)other than labor are fixed in the short run.a. Add two additional columns to the table and enter the marginalproduct and average product for each number of workers.b. Over what range of labor input are there increasingreturns to labor? diminishing returns to labor? negativereturns to labor?c. Over what range of labor input is marginal product greaterthan average product? What is happening to average productas employment increases over this range?d. Over what range of labor input is marginal product smallerthan average product? What is happening to average productas employment increases over this range?
- Q. Table 3 above shows how output varies with only one variable input used in production. If the cost of a unit of labor is $500, what is the approximate marginal cost of the 230th unit of output? a. $2.50 b. $8.50 c. $12.50 d. $50.00 e. $100.00(Production in the Short Run) Complete the following table. At what point does diminishing marginal returns set in? Units of the Variable Resource Total Product Marginal Product 0 0 — 1 10 — 2 22 — 3 — 9 4 — 4 5 34 —A commercial fisherman notices the followingrelationship between hours spent fishing and thequantity of fish caught:HoursQuantity of Fish(in pounds)0 hours 0 lb.1 102 183 244 285 30a. What is the marginal product of each hour spentfishing?
- The cost, in dollars, of producing x yards of a certain fabric is C(x) = 1100 + 13x − 0.1x2 + 0.0005x3. (a) Find the marginal cost function. C'(x) = (b) Find C'(500) and explain its meaning. What does it predict? C'(500) = and this is the rate at which costs are increasing with respect to the production level when x = . C'(500) predicts the cost of producing the ---Select--- 499th 501st 401st 599th 500th yard. (c) Compare C'(500) with the cost of manufacturing the 501st yard of fabric. (Round your answers to four decimal places.) The cost of manufacturing the 501st yard of fabric is C(501) − C(500) = − 45,100 ≈ , which is approximately C'(500).MNLogs harvested logs (with no inputs from other companies) from their property in northern Minnesota. They sold these logs to MNLumber for $1,000 and MNLumber cut and planed the logs into lumber. MNLumber then sold the lumber for $2,500to MNFurniture. MNFurniture used the lumber to produce 100 tables that they sold to customers for $60 each.Instructions: Enter your responses as whole numbers.a. Complete the table below to calculate the value added by each firm. Company Revenues Cost of purchased inputs Value added MNLogs $ $ $ MNLumber $ $ $ MNFurniture $ $ $ b.Suppose that all of these transactions took place in 2016. By how much did GDP increase because of these transactions?$ c.Suppose that MNLogs harvested the logs in October 2016 and sold them to MNLumber in December 2016. MNLumber then sold the finished lumber to MNFurniture in April 2017 and MNFurniture sold all 100 tables during the rest of 2017. By how much did GDP increase in 2016 and 2017 because of…1. April quit her job as an accountant at Ernst and Young, where she was paid $45,000 per year. She started her own landscaping business. She rents machines and tools for $50,000 and pays $10,000 as wages to her help. These are her only costs. April earned total revenue of $100,000. a. Her accountant calculates her profit as $50,000. b. Both answers A and B are correct. c. She has an economic loss. d. Her explicit cost is $105,000. 2. Which of the following does NOT influence the price elasticity of demand? a. the price of the good relative to total income b. the number of substitutes available to consumers c. the amount by which the demand curve shifts when the price of another good changes d. the time period buyers have to respond to a price change 3. If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent, then demand is a. inelastic. b. unit elastic. c. elastic. d. perfectly inelastic. 4. Goods that can be produced at a…