The fast food company Schnabb uses labor and capital to produce its product. Holding the production fixed, what is the effect of a lower price of capital on the ratio between the number of workers and the amount of capital used? Explain using isocosts and an isoquant.

Q: The table below describes the production function for a candy maker. Number of Output Marginal…

A: Marginal product is the additional output produced by employing an additional unit of input

Q: Suppose that during an economic boom labour costs rise by 100% and are expected to stay at that…

A: Isoclines are curves on an isoquant map that pass through points with identical marginal rates of…

Q: Suppose the isoquant represents the production of 120 pencils. What will happen to the isocost and…

A: A. If labour become more costly than the isocost line will pivot towards left from horizontal axis…

Q: Draw the total physical product curve on graph below. . Beyond what number of workers do diminishing…

A: Here we have to find,  A firm produces good X with just two factors such as capital and labour .…

Q: The Paunch Burger restaurant chain currently produces 250,000 units of output by using 2,400 units…

A: Answer -    MRTS (Marginal rate of technical substitution) :- The rate by which one factor need  to…

Q: Suppose the machine rental rate decreases from $20 per hour to $10 per hour, while the rental rate…

A: On an isoquant map, isoclines are curves that cross through locations with similar marginal rates of…

Q: True or false The law of diminishing returns implies that the marginal product of labor (MPL) is…

A: MPL: The marginal product of labor is defined as the increase in output or output experienced by a…

Q: Suppose that hiring a third worker at the campus coffee shop increases sales from $115 per hour to…

A: Answer: The marginal product of labor: marginal product of labor refers to the number of additional…

Q: A firm's marginal product of labor is 5 and its marginal product of capital is 4. If the firm adds…

A: Marginal product to labor = 5  Marginal product to capital = 1

Q: When the marginal product of labor equals the average product of labor, then a.the mar d. c. the…

A: Average product refers to total product per unit of labour. Marginal product refers to change in…

Q: The marginal product of labor is the change in A) total cost from employing one more worker. B)…

A: Marginal product is the additional output produced by employing an additional unit of input.

Q: After Suzie, owner of Suzle's Sweet Shop, hires her 8th worker the average product of labor…

A: The answer and reason for the correct option is as follows:-

Q: The marginal rate of technical substitution of labor for capital (MRTSLK) is defined as the  rate at…

A: Marginal rate pf technical substitution MRTS is the rate at which one factor say labor can be…

Q: Explain Isoquant curve with its characteristics

A: Assets, which are the foundations of the economies, are the factors of production; these are what…

Q: When analyzing isoquants, if the marginal product of all inputs double, how would that change the…

A: Isoquants are the curve that depicts a various mix of labor (l) and capital (k) that can be used to…

Q: depending on the stages of production(increasing returns, diminishing returns, negative returns) can…

A: Solution: Law of variable proportion: It refers to the increase in quantity of only one input…

Q: An examination of the production isoquants in the figure at right reveals that A. the MRTS is…

A: Isoquants show different combinations of two inputs that can be used to produce a given level of…

Q: Along an isoquant, The MRTSfork equals the MP of K/ MP of L. Price of L/ Price of K. O the MP of…

A: The marginal rate of technical substitution (MRTS) illustrates the rate at which one of the factor…

Q: Why does the marginal product of labor start to decrease after a certain number of workers are…

A: Marginal Product of labour basically means the change in total output, due to one unit change in…

Q: isoquants and the isocost

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The degree of convexity of an isoquant determines the degree of substitutability of factors of…

A: Answer: An isoquant shows the locus of two factors that yield the same level of output on an…

Q: please help

A: Marginal Product:Marginal product refers to the change in output due to the change in inputs.…

Q: Part 1 A firm produces output (y) using two inputs, labor (L) and capital (K), according to the…

A: 1. The isoquant will be, L0.25K0.75=c (1). Slope of this firm's isoquant is equal to dKdL at…

Q: Given the production function y=(ip - Kp )1/p , what is the technical rate of substitution, the…

A: An equation in economics that describes the relationship between the amount of a factor of…

Q: Given the production function y=( ip - Kp)1/p, what is the technical rate of substitution, the…

A: The production function shows the technical relationship between the given input and the achieved…

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: Consider the following table illustrating the production function of gadgets. Furthermore, suppose…

A: The marginal product of labor denotes the additional output that a firm is able to produce by…

Q: Refer to the figure at right. At which point on the total product curve is the average product of…

A: Total product refers to total output produced by the firm. Average product refers to total product…

Q: If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the…

A:

Q: Pizzas are produced using capital as a specific factor and labor as a mobile factor. The graph below…

A: Pizza are produced using capital as a specific factor and labor as mobile factor.  Capital owner's…

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: What is the firm's average fixed cost of producing 1,500 gadgets?

A: Fixed cost refers to the cost incurred by a firm irrespective of the level of output produced by a…

Q: If the marginal product per dollar spent on capital is more than the marginal product per dollar…

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

Q: The value of marginal product of an input is the value of the: Select one: a. total outout produced…

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

Q: Elaborate the "concept of homogeneity and Returns to Scale. Mathematically prove the following…

A: Here, we have the production function:- XL,K=δ0LαKβ To prove the homogeneity of this production…

Q: a. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you about the…

A: The three criteria can be explained as: The convex shape isoquant- The nature of the production…

Q: Graph the isoquant below and explain   Labor (x) 50 38 28 20 14 10 8 7 Capital (y) 3 6…

A: The factors of production refer to the inputs which firms use in order to produce the desired amount…

Q: At point "C" in the above figure: Marginal product of labor is positive and rising. Marginal product…

A: From the figure, we can conclude that,

Q: Quantity of output (# of cookies Total product curve per hour) Quantity of input (# of workers) In…

A: *ANSWER :-

Q: Assuming the firm is minimizing its cost and the price of labour is $10 per unit and the price of…

A: In economics, the marginal product of labor is the change in output that results from employing an…

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: When the marginal product of an additional worker is less than the marginal product of the previous…

A: In a market, the productivity of the input resources is known as the returns from the inputs used in…

Q: Quantity Total of Labor Product 45 95 120 4 135 140 91 138 130 Given the above table, the marginal…

A: Marginal product refers to the change in total product with respect to change in quantity of labor.