Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the number of barbers from 4 to 5? From 5 to 6? Does it continue the pattern of diminishing marginal returns? Explain. Widgets (Q)1.002.003.004.00Workers (L)3.254.45.29.x Wage Rate per hour$10$10$10$10= Cost$32.50$44.00$52.00$90.00Table 7.7LaborQuantityFixed CostVariable CostTotal Cost116$160$80$240240$160$160$32060$160$240$400472$160$320$48080$160$400$560684$160$480$640782$160$560$720Table 7.9 Output and Total CostsRefer to Table 7.9 and Figure 7.7 above. What isthe marginal gain in output from increasing thenumber of barbers from 4 to 5? From 5 to 6?Does it continue the pattern of diminishingmarginal returns? Explain.

Answer to the question is as follows:

Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the number of barbers from 4 to 5? From 5 to 6? Does it continue the pattern of diminishing marginal returns? Explain.

Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the number of barbers from 4 to 5? From 5 to 6? Does it continue the pattern of diminishing marginal returns? Explain.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: Factor Markets: With Emphasis On The Labor Market

Section13.1: Factor Market

Problem 2ST

See similar textbooks

Related questions

Q: Which of the following statements is true according to Keynesian economic theory? O If the…

A: The answer is - If the government increases spending by $10 million demand will Winkle increased by…

Q: Determine whether the actions below correct positive, negative externalities or neither: A. Correct…

A: When the production or consumption of a thing has an influence on other parties who are not directly…

Q: Suppose you deposited $1000 in bank. The required reserve ratio is 10% and banks hold 10% excess…

A: Required reserves ratio is the proportion of deposits banks must hold and excess reserves are the…

Q: An externality occurs in a market when Oa third party is impacted by a market activity Oexternal…

A: There are two types of externality: 1. Negative Externality 2. Positive Externality

Q: 2. Consider the demand schedule below for a monopolist who sells computer software. Quantity Price…

A: Quantity Price TR TC MR MC 0 20 10 1 19 19 17 7 2 18 36 22 17 5 3 17 51 29 15 7…

Q: Suppose the European Union (EU) was investigated and proposed a merger between two of the largest…

A: Price elasticity of demand is an financial degree of the sensitivity of call for relative to a…

Q: 2. The following tables give information about demand and total cost for two firms. In the short…

A: There is no express demand from the corporation. schedule. The price is presented in the 'Above a…

Q: What is the concensus of how economists believe the government should deal with occurences of moral…

A: Numerous market inefficiencies, unethical practises, and a lack of transparency in the financial…

Q: How can we reduce the number of low-income workers and increase the number of middle-and…

A: There are many factors like education, training, health services, etc. that can decrease the number…

Q: Suppose the market for pears has perfectly elastic demand and somewhat inelastic supply. Favorable…

A: Factors that affect the supply of a product; these factors include a change in the prices, weather…

Q: A company considers introducing a new newspaper. Its direct competitor charges $0.25 at retail. The…

A: Salvage value is the estimated book value after depreciation. given information Initial…

Q: Construct a cash flow timeline with n=10 years. Include a Year 0 cost of P0, at least two future…

A: Cash flow is economic model of cash inflow and outflow on a time line. It represents inflow of cash…

Q: The graph illustrates the labor market in a country that does not tax labor income. Suppose that the…

A: Labor market Government introduces a Social security tax of $2 an hour. This will shift the labor…

Q: In a country where apples are produced and exported but not consumed, a change in the price of…

A: GDP deflator measures the price of all goods and services produced by an economy. CPI measures the…

Q: 6. In the table below, you can find the willingness to pay for each extra unit of a good, along with…

A: Deadweight loss can be defined as the cost that arises from economic deficiency and unbalanced…

Q: In a Solow growth model with population growth but no technological change, show graphically that an…

A: The Solow model is an economic growth model that examines the change in the output level in an…

Q: Should the government do more to reduce income inequality? If so, what? If not, why not?

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

Q: Please solve all subparts A,B,C,D max in 30 minutes and no reject thank u A. Explain what is…

Q: A government uses an expenditure-reducing measure to correct a balance of payments current account…

A: The measure that depicts the difference between the outflow of money to the rest of the world and…

Q: Pays for each computer a cost f v=3, The fivm hes a produotiou function Y= k+2L and needs t prodwee…

A: Option a. If we put the values of option a then we get Y = 6 but we require Y = 12 . This is…

Q: Before the virus, the demand and supply for Good A is D1 and S1. If the income elasticity is .5, the…

A: According to the law of demand, buyers will demand less of an economic good at higher…

Q: 1. given the following game in extensive form:

A: Given, An Extensive Form game Two Players : Player 1 and Player 2Player 1 has two strategies : A…

Q: Data literacy and career: what's the deal?

A: The capacity to understand, work with, analyze, and communicate with data is known as data…

Q: a. Theimerest ate L Hosehod suings e. Wages asming heis produtin)

A: According to Ricardian equivalence, funding government expenditure via current taxes or future taxes…

Q: a macroeconomy functioning at fullempioyment The marginaipropensity toconsume is 0.75 • AutonortouS…

A: MPC = 0.75 c = 1100 G = 75 I = 50 c- Autonomous Consumption, I-Investment, and G - Government…

Q: Using the concept of externalities, discuss the economic rationale for government intervention in…

A: Externalities are basically the effects or results of any economic activity to the third parties. It…

Q: he elasticity coefficient for a relatively elastic or simply elastic demand curve, is"…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: 8.A bank has an 8 percent reserve requirement, S10.000 in deposits, and has loaned out all it can,…

A: We have given rr=0.08 and deposits = 10,000.

Q: Multiple Choice Adverse selection describes a situation where an individual's demand for insurance…

A: In a market, there are various activities that results in market failure, such that externality,…

Q: A country finds itself in the following situation: a government budget surplus of $800; total…

A: "Government;s budget surplus occurs when government savings are more than the government…

Q: Continued from the previous 2 questions. Suppose the virus arrives in the U.S. in the spring. Henry…

A: Budget line refers to the graphical combination of all possible bundles of two goods that can be…

Q: Explain the slope of the SR aggregate supply schedule. Explain how the SR aggregate supply schedule…

A: Short-run aggregate supply (SRAS) is a graphical model that shows the positive connection between…

Q: Consider the following demand information: Quantity Price 40 34 10 What is the price given the…

A: Total revenue is price multiplied by quantity. Total revenue is maximum when marginal revenue is…

Q: b) Consider 2 firms in an oligopoly industry that compete on output choice. They face an inverse…

A: Two firms are in Cournot duopoly when they compete in quantity, and their production decision…

Q: Aesd ts emoveag There can be at least one input for production which can be considered as fixed in…

A: Short run refers to the period of time in which certain factors of production are fixed while others…

Q: Brian likes going to the cinema more than watching football. Anna, on the other hand, prefers…

Q: How does asymmetric information lead to a market failure?

A: "Asymmetric information" occurs when one party of a transaction has more information than the…

Q: Question 2 Consider the sequential game in which the principal P first makes her choice between…

A: Answer -

Q: Methodology of The importance of international trade in economic growth of Bahrain.

A: International Trade The export and import of goods and services, capital goods, and financial…

Q: The daily demand for movie rental from a movie theatre operator Silver Screen is given by the…

A: Revenue maximization is a theoretical goal of a company that aims to sell at a price that maximizes…

Q: Which policy measure may reduce demand-pull inflation but increase cost-push inflation? Pick a,b,c,…

A: Demand-pull inflation is the growing price pressure that comes with a supply shortage, which…

Q: 1. The following data are price/quantity/cost combinations for Titan Industry's mainframe computer…

A: Quantity total revenue marginal revenue Profit marginal cost 0 0 0 (2,00,000) 2,00,000 1…

Q: The market for lemons refers to a situation where sellers are better informed than buyers about the…

A: In a market, sellers can sell two types of products, that are new and lemon, especially in…

Q: Steve has the utility function U(ci, c2) = c2 + 2c2where ci is his consumption in period 1 and ci is…

Q: Consider the AA-DD model with flexible exchange rates. Assume the economy is initially at full…

A: A Recession is defined as a period where the performance of the economy keeps declining over several…

Q: Some of the negative consequences associated with the government regulation of monopolies or…

A: Monopolies refers to a market situation in which there is only one single seller in the market and…

Q: Jacques, a resident of France, goes to Germany to buy a brand-new car for €15,600.00. He then brings…

A: GDP is the all final value of goods and services that produced in a nation in a specific period of…

Q: Discuss the common law remedies that are available for a breach of sale agreement.

A: Whenever a guarantee or arrangement is broken by any of the gatherings we call it a breach of…

Q: In Wonderland production per worker (y) depends on capital per worker (3) such the y=10√k. Every…

A: The question is related to the Solow model of economic growth.

Question

Widgets (Q)
1.00
2.00
3.00
4.00
Workers (L)
3.25
4.4
5.2
9.
x Wage Rate per hour
$10
$10
$10
$10
= Cost
$32.50
$44.00
$52.00
$90.00
Table 7.7
Labor
Quantity
Fixed Cost
Variable Cost
Total Cost
1
16
$160
$80
$240
2
40
$160
$160
$320
60
$160
$240
$400
4
72
$160
$320
$480
80
$160
$400
$560
6
84
$160
$480
$640
7
82
$160
$560
$720
Table 7.9 Output and Total Costs
Refer to Table 7.9 and Figure 7.7 above. What is
the marginal gain in output from increasing the
number of barbers from 4 to 5? From 5 to 6?
Does it continue the pattern of diminishing
marginal returns? Explain.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

The paper factory employs 470470 workers, producing 1,3001,300 tons of paper per month. Hiring 2020 more workers will increase the output by 5050 tons of paper.Calculate the total product for the next additional 2020 workers if their marginal product is 1010 tons of paper per month. Enter your answer in the box below and round to the nearest whole number if necessary.
When hiring a new employee, a business has to pay certain expenses on this employee including wages and nonwage expenses. These extra costs are called: Marginal Revenue Marginal Revenue Product Marginal Labour Cost Marginal Productivity of Labour Marginal Cost
You used the wrong elacticity of labor supply. It is .16 not 0.1
Aldrin is a call center agent and has a daily wage of ₱ 2500. Aldrin takes an antihistamine drug once a day for his allergic rhinitis. He regularly visits his physician once a year to get a new prescription so that he could purchase another 1 year supply of his antihistamine drug. This visit takes place in the morning and he does not miss any work. Because of his regularly visit to his physician, it gained him 6 more productive work days per year than if he had not received regular treatment for allergic rhinitis. Compute for the benefit-cost ratio of the antihistamine drug therapy given the following information. Please attached here your solution. Round-off your final answer to 2 decimal places and box your final answer.
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?
Two job opportunities are as fo:- Job type Salary Accountant $30000 Stenographer $27000 Manager. $25000 All the salaries are annual salaries. Calculate the opportunity cost of a person choosing the job of accountant
Case B: Jessie Pharmacy. Jessie, a pharmacist, is planning on opening her own pharmacy. Jessie Pharmacy is expected to generate yearly revenue of $500,000. Jessie will run the pharmacy herself on full-time basis. Jessie’s alternative employment options are as follows: Continue to work as a senior medical representative for $50,000 per year. Accepts a research position in another company for $70,000 per year. Jessie expects to spend $350,000 per year on purchasing drugs and cosmetics for resale to her customers. She will also need to hire three employees: an assistant, an accountant and a custodian, for whom the total salaries to be paid are expected to be $48,000 per year. Jessie owns the building in which her pharmacy is supposed to be; however, she could rent out the pharmacystore space for $42,000 per year. Calculate Jessie’s accounting profit and economic profit. In your opinion, should Jessie proceed with opening her own pharmacy? Justify your answer
Units of resource Total Product Marginal Product 0 0 ----- 1 8 8 2 14 6 3 18 4 4 21 3 5 23 2 If the firm’s product sells for a constant $3, per unit and the price of the resource is a constant $15, the firm will employ how many units of the resource?
(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 What is the marginal product of the secondworker? What is the marginal revenue product of the fourthworker? What is the marginal cost of the fifth worker?Based on your knowledge of marginal analysis, how manyworkers should you hire? Explain youanswer. QUESTION TITLE :- 7. (TCO C) You have been hired to…
The Al-Maskri Company in Seeb makes flower pots and receives RO 10 for each finished pot. Mr. Al-Maskri’s only factors of production are flower pot machine operators (labor) and a small building where the laborers work from. The number of flower pots per day the company produces depends on the number of employee-hours per day as shown below. The wage is RO 15 per hour. Number of pots per day Number of employee-hours per day 0 0 5 1 10 2 15 4 20 7 25 11 30 16 35 22 Al-Maskri’s daily fixed cost for the flower pot making machine and building is RO 60. Complete the following Table showing total revenue, variable cost, total cost, and daily profit for various quantities of daily flower pot production. Quantity of Pots per day Total Revenue RO per day Variable Costs RO per day Total Costs RO per day Profit RO per day 0 0 0 60 -60 5 75 -25 10 15…
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
A carpenter quits his job at a furniture factory to open his own cabinetmaking business. In his first two years of operation, his sales average $100 000 per year and his operating costs for wood, workshop and tool rental, utilities, and miscellaneous expenses average $70 000 per year. Now his old job at the furniture factory is again available. What is the lowest wage at which he should decide to return to his old job? Why?