Q: Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive market.…
A: A production function illustrates the relationship between the inputs used and the output produced…
Q: A factory that you are managing has an hourly production process that can be represented by the…
A: Cost is minimized when production takes place where marginal rate of technical substitution is equal…
Q: phone-making company operates a plant in City A where labor is more expensive as compared to…
A: A. Isocost line represent the input required to produce same level of output. Here the isocost line…
Q: Production function is Q(K,E) =2KE where K is capital and E is employment in work hours. Use the…
A: In production, the isoquant curve shows the various possible and feasible combinations of inputs…
Q: Explain the law of diminishing returns of a variable input. What is characteristic for total…
A: Law of diminishing returns to the variable input states that as the variable input keeps on…
Q: MC ATC AVC Q2 Q3 Qs Q If the firm depicted in the graph had to pay higher rent to its landlord, we…
A: The rent is a fixed cost and increase in fixed cost increases total cost.
Q: Ing fong TC = 8Q³ - 96Q² + 32Q Derive the expressions for marginal cost and average cost. What is…
A: Average cost: ‘average cost’ is the ‘total cost’ divided by the number of units of the good. It…
Q: What happens to the average fixed cost, when the output of a firm increases.
A: # In an economy, the average fixed cost is referred to be as fixed cost per unit of output produced.…
Q: A research study published in Social Science Medicine, “Production Functions for General Hospitals,”…
A: Given: Q = 5*Staff.34*Beds.64*Drugs.04*Specialists.02 Staff =20, Beds = 120, Drugs = 60, Specialists…
Q: Production function is Q(K,E) =2KE where K is capital and E is employment in work hours. Use the…
A: In economics, manufacturing activity is related to the physical output of the production process of…
Q: Suppose you have following production function for your firm : q = åx,“x, where x, > 0, x, > 0 and a…
A: You have asked multiple questions. We will answer the first question for you. If u want any specific…
Q: Assume that a firm has a plant of fixed size and that it can vary its output only by varying the…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Given the following production function. If the price of the output is $100. What is the Marginal…
A: Answer; Marginal Revenue product of labor = Marginal Product of labor * Price of output produced by…
Q: The following is output data for a firm. Assume that the amounts of all non-labour resources are…
A: The law of diminishing returns states that benefits or advantages acquired from something will…
Q: Suppose that you are starting up a lawn-raking business. All of your workers are required to supply…
A: The objective function is composed as Max==PQ-TC where the total cost is the employing work at an…
Q: True or false and explain Suppose a firm’s marginal product of labour is MPL = 10/L, where L is…
A: In the labor market of the economy, the equilibrium wage rate and the equilibrium quantity of labor…
Q: affect a
A: The law of diminishing marginal returns states that addition of a factor of production results only…
Q: Consider a firm that produces car repairs. All inputs are fixed except the number of workers hired…
A: Marginal Product = Change in Total Product / Change in Number of Workers The marginal product of…
Q: The production function of a competitive firm is described by the equation y = 1/2G1/2 2.x6x. The…
A: y = 2x1126x212 p1 = $3 p2 = $4To find Marginal Product of good 1 (MP1) differentiate y with…
Q: Consider a firm that has production function f(L,K)= 3L2/3K1/3. What is the expression for this…
A: Firm’s production function is given as:
Q: Suppose Die Cast Aluminum Co. is a subcontractor for the auto industry and makes specialized auto…
A: The profit maximizing firm hire the labor at the point where the marginal revenue product of labor…
Q: Assume the firm's Fixed cost= $500 and the firm pays each worker $200 a) Complete the following…
A: Given fixed cost = $600 Variable cost = $200
Q: Suppose the following table gives the quantity of labor, offered wage, and marginal revenue product…
A: d. There are two types of market structure which are perfect competition and imperfect competition.…
Q: The following graph shows the marginal and average product curves for labor, the firm's only…
A: Marginal cost is the additional cost which occur by producing one more unit of good or service. Here…
Q: Demonstrate your understanding of the law of diminishing marginal returns.
A: Law of diminishing marginal productivity states that the marginal production from the additional…
Q: Consider a production function Y KªL1-a. a) What is the marginal product of capital? Write down the…
A: Since you posted multiple subparts, we will answer first three for you. If you want any particular…
Q: Output Marginal Labor (Q) Product 15 1 50 15 5 4 70 5 60 In the table above, when the firm produces…
A: The labor market of the economy determines the equilibrium wage rate and the quantity of labor…
Q: When the marginal product of adding a worker is a greater loss than the loss of the marginal product…
A: When the marginal product of adding a worker is a greater loss than the loss of the marginal product…
Q: Suppose that labor is the only input used by a perfectly competitive firm. The firm’s production…
A: Disclaimer :- As you posted multiple questions we are supposed to solve the first one only .…
Q: 10. The following graph shows the marginal and average product curves for labor, the firm's only…
A: When L = 100, TVC = w x L = 2,000 x 100 = 200,000 Minimum AVC = TVC / Q = 200,000 / 8,000 = $25
Q: Item 9 The following graph shows the marginal and average product curves for labor, the firm's only…
A: When L = 60, TVC = 2,000 x 60 = 120,000 AVC = TVC / Q = 120,000 / 3,600 = $33.33
Q: A firm's production is as follows: Q = 12K/2L/3, where L is number of workers and K is number of…
A: Profit is calculated by subtracting Total Cost (TC) from Total revenue (TR). The profit function can…
Q: Question 18 Consider a firm that has production function f(L,K)=4L2/3K1/3. What is the expression…
A: The correct answer to the above-mentioned question is MPL(L, K)=8K1/3/3L1/3.
Q: A firm uses Labour (L) and capital (K) to produce commodity (Y). The quantities of the inputs and…
A: Answer: Given: Wage rate = Rs. 340 per unit of labour Rental rate = Rs. 0.5 per unit of capital…
Q: Suppose the short-run production function for a restaurant producing a pack of food is given by: Q =…
A: First create the profit function and then it must be differentiated and must be put equal to zero.
Q: Explain Law of Diminishing Marginal Returns using the following example. The weekly number of…
A: The law of diminishing marginal return explains that after reaching an optimal level, the addition…
Q: The following table shows the relationship between workers and output for a small factory in the…
A: The marginal product of labour (or MPL) alludes to an organization's expansion in absolute…
Q: Discuss the concept of the law of diminishing marginal returns
A: The total product (or return) refers to the aggregate goods and services produced by the firm at…
Q: Suppose Die Cast Aluminum Co. is a subcontractor for the auto industry and makes specialized auto…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Consider the production function of the firm below. Which of the following is NOT true? The marginal…
A: The marginal product of labor at B is 70 units – It is true (70-0)The total product is increasing as…
Q: The following table shows the relationship between workers and output for a small factory in the…
A: Marginal product of labor is the additional output produced, when there is an increase in 1 unit of…
Q: Suppose the short-run production function for a restaurant producing a pack of food is given by: Q =…
A: a) That amount of labor is chosen when wages are equal to the Value of Marginal Product of labor.…
Q: You have been doing research for a firm andhave discovered that the firm’s averageproduct of…
A: If I have been doing research for a firm and have discovered that the firms average product of…
Q: Describe the difference between a diminishing marginal product of labor and a negative marginal…
A: Law of diminishing marginal product is a short run concept where some factors are fixed and some are…
Q: The production function of a competitive firm is described by the equation y = 2x11/2 6x21/2. The…
A: We are going to find cost structure in terms of Q and then find Marginal Cost.
Q: 30 25 20 15 10- 1 3 5 6. 8. Labor 10- 4) 2. Marginal Product
A: Marginal product refers to change in total product with respect to change in input. It refers to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A company decides whether and how to induce a manager to put in high effort to increase the changes that the project succeeds. Unfortunately, the manager's effort is unobservable. the value of a successful project is $2 million; the probability of success given high effort is 0.4; the probability of success given low effort is 0.2 The manager's utility is the square root of compensation (measured in millions of dollars) and his disutility from exerting high effort is 0.1. The reservation wage of the manager is $160000. To induce HIGH effort, the company should pay the manager $______ in case of a successful project and $______ in case of an unsuccessful project.Actuaries perform the crucial task of estimating the time paths and probability distributions of costs and revenues for different insurance contracts. Becoming an actuary takes several years, and involves passing a series of rigorous examinations given either by the Society of Actuaries or by the Casualty Actuarial Society. Usually, the individual works for an insurance company while studying for the exams, and the company gives the individual time off to study for the exams. Passing an exam usually results in a significant pay increase. a) Do actuaries have general or firm-specific human capital? b) Who “pays for” the worker’s time off to study for the exams? Choose one answer and explain. · the worker does, by accepting a lower salary · the firm does, to invest in the worker’s human capital c) Why does the individual get a pay increase after passing each exam? Why not evaluate the employee once per year, like many companies do?Name three products for which subjectivediscretionary income might be a better predictor ofconsumption than actual income. Justify your answer.
- Imagine a signaling model where there are two types of workers, low-productivity workers with a productivity of 10, and high-productivity workers with a productivity of 30. The proportion of low-productivity workers is .5. Firms are competitive and obtain profit equal to the productivity of the worker they hire. Workers can obtain one of three levels of education: e1, e2, and e3. Workers get utility equal to their wage minus the cost of education. Wages must be between 10 and 30. The cost of getting an education for low-productivity workers is e1 = 0, e2 = 9, e3 = 18. The cost of getting an education for high-productivity workers is e1 = 0, e2 =4, e3 = 8. Are there any separating equilibria in this model? If so, find them, if not show why they do not exist.Imagine a signaling model where there are two types of workers, low-productivity workers with a productivity of 10, and high-productivity workers with a productivity of 30. The proportion of low-productivity workers is .5. Firms are competitive and obtain profit equal to the productivity of the worker they hire. Workers can obtain one of three levels of education: e1, e2, and e3. Workers get utility equal to their wage minus the cost of education. Wages must be between 10 and 30. The cost of getting an education for low-productivity workers is e1 = 0, e2 = 9, e3 = 18. The cost of getting an education for high-productivity workers is e1 = 0, e2 =4, e3 = 8. A) Are there any pooling equilibria in this model? If so find all of them, if not, show why they do not exist.Which of the following statements are correct regarding the characteristics of a guardianship of the person used to care for the personal needs of an incompetent person? The guardian is appointed by a court. The guardian is appointed by a durable power of attorney. The guardian's authority may be plenary or limited. A guardian becomes personally liable for the incompetent person's expenses.
- a manager's incentives are not perfectly aligned with the profit-maximising goals of a firm's owners, one plausible scenario is that they may have an incentive to maximise the firm's total revenue (if for example their income is proportional to revenue). Explain why the revenue maximiser should always produce more than the profit maximiser.You have just been hired as manager of a new health spa in RetirementVillage, Florida. The owner has commissioned a market study that estimates the average customer’s monthly demand curve for visiting the healthspa to be Q = 50 − 0.25P. The cost of operating is T C = 3Q, whereQ is the number of visits. The owner has been charging a $20 per-monthmembership fee and a $5 per-visit fee. Part of your salary is 10 percent ofthe monthly profits. Suggest a pricing strategy that will increase your salaryWhat is the likelihood that firms would enter the market in the short-run? Use COVID-19 as a market condition to elaborate the likelihood and further elaborate an exit strategy if one exists.