Suppose that an economy produces 1400 units of output, employing 20 units of input, and the price of the input is $30 per unit. The level of productivity in this economy is? a. 70 b. 60 c. 40 d. 20
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Suppose that an economy produces 1400 units of output, employing 20 units of input, and the
a. 70
b. 60
c. 40
d. 20
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- Explain with the help of Graphs of Total Product (TP) and Marginal product (MP) the three laws of variable proportions and their significance in Industry and agriculture. Give the relationship between TP and MP at different stages of variable proportions. What is the relationship between Average Product curve (AP) and marginal product curve (MP) and explain at what point a progressive firm should change its labor or capital inputs with more skilled labor or with new technological machine in order to remain comparative in the market. What would happen to its product in the market if it does not change its machines or if it changes all its machines at the same timeSuppose the productivity of capital and labor are as shown in the accompanying table. The output of these resources sells in a purely competitive market for $1 per unit. Both capital and labor are hired under purely competitive conditions at $3 and $1, respectively. a. What is the least-cost combination of labor and capital the firm should employ in producing 80 units of output? Explain. b. What is the profit-maximizing combination of labor and capital the firm should use? Explain. What is the resulting level of output? What is the economic profit? Is this the least costly way of producing the profit maximizing output?Q5. A bicycle manufacturer in China currently employs 40 production workers and five supervisors and produces . The marginal product of the last production worker employed is 60 units of output per hour, and production workers are paid 50 CNY per hour. The marginal product of the last supervisor employed is 120 units of output per hour, and supervisors are paid 80 CNY per hour. i. If the firm produced 2,100 bicycles per month before the last production worker was hired, how many bicycles does it produce now? ii. Assume that the firm's isoquants are smooth curves and that labor hours can be varied continuously. Is the firm producing the maximum level of bicycles given its current level of cost? Explain why or why not. If it isn't, explain what it should do to increase output.
- Ab 11 Economics A production function is given by the equation Q = 48L^0.5*K^0.5. Where L is the number of labor units and K is the capital units. Find the marginal product of labor (QL) and the marginal product of capital (Qk) at L=9 and K=16.A firm is currently employing a cost-minimizing combination of labor and capital for a given level of output. The firm is employing 20 workers, and the marginal product of the last worker is 40 units of output. The firm is employing 100 units of capital, and the marginal product of the last unit of capital is 10 units of output. If the wage rate is $20 per hour, what is the price of capital? (A) $2.5 per hour (B) $5 per hour (C) $10 per hour (D) $100 per hour (E) $200 per hourAccording to the Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring planMitsubishi conducts an analysis of how labour and capital are used in its production process. Prior to restructuring Mitsubishi’s marginal rate of technical substitution is 0.15 ( in absolute value). To hire workers. Suppose that Mitsubishi must pay the competitive hourly wage of US$ 15. In thestudy of production process and markets where capital is procured, suppose that Mitsubishi determine that its marginal productivity of capital is 0.5 small cars per hour at its new targeted level of output and that capital is procured in a highly competitive market. The same study indicates that the average selling price of Mitsubishi’s smallest car is US$ 9500. Determine the rate at which Mitsubishi can rent capital and marginal productivity of labour at its new targeted level of output. To minimize…
- Dina is working for a consulting firm making $60,000 per year but considers starting her own consulting company. Dina has determined that to launch the business, she needs to invest $100,000 of her own funds. The annual cost of running the business will include $70,000 for the rent of the office space, $210,000 for employee wages, and $5,000 for materials and utilities. Dina plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 6%. Dina's total implicit cost per year is . Dina's total cost per year is .Suppose that the price of the product remains at $2 and the wage at $13, but that there is a technological breakthrough that increases output by 25 percent for any given level of labor. Find the new profit maximizing L.Q87 Consider a firm that uses only labour and capital as inputs. At the present use of labour and capital, the MP of labour is four times the MP of capital and the price of labour is twice the price of capital. To minimise its costs for a given level of output, the firm should... a. Decrease both capital and labour. b. Increase both labour and capital. c. Decrease capital and increase labour. d. Stay at its present factor mix. e. Decrease labour and increase capital.
- Q1. What effect would each of the following have on the value of the firm?(a) A new advertising campaign increases the sales of the firm substantially.(b) A new competitor enters the market.(c) The production department achieves a technological breakthrough that reduces Production costs.(d) The firm is required to install pollution-control equipment.(e) The workforce votes to unionize.(f) The rate of interest rises.(g) The rate of inflation changesP232,P5) Hey! Need help with the following macro question, thank you in advance! (chart attatched below) Suppose Die Cast Aluminum Co. is a subcontractor for the auto industry and makes specialized auto parts. There is a bracket it manufactures that it sells for $1.50. The following table shows the number of brackets that can be produced from a given number of labor hours. Assume that the company cannot hire labor for a fraction of an hour. Find the marginal product (in brackets), and the value of the marginal product (in dollars), of each hour of labor. If the wage paid to workers in Die Cast’s plant is $25 per hour, how many hours of labor should the firm employ? How many hours will be employed if the wage increases to $35 per hour? Explain. How many hours will be employed if the wage is $35 per hour, but the price of a bracket declines to $1?According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and capital are used in its production process. Prior to restructuring Mitsubishi’s marginal rate of technical substitution is 0.12 (in absolute value). To hire workers, suppose that Mitsubishi must pay the competitive hourly wage of ¥1,800. In the study of its production process and markets where capital is procured, suppose that Mitsubishi determines that its marginal productivity of capital is 0.8 small cars per hour at its new targeted level of output and that capital is procured in a highly competitive market. The same study indicates that the average selling price of Mitsubishi’s smallest car is ¥1,200,000. Determine the rate at which Mitsubishi can rent capital and the marginal productivity of labor at its new targeted level of output. To…