The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant. Total Product 24 42 60 80 92 Units of Resource 1 2 4 6 7 If the product the firm produces sells for a constant $3 per unit, the marginal revenue product of the fourth unit of the resource is

The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant. Total Product 24 42 60 80 92 Units of Resource 1 2 4 6 7 If the product the firm produces sells for a constant $3 per unit, the marginal revenue product of the fourth unit of the resource is

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 9SQ

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A company produces canned drinks and sells them to supermarkets at $2 per unit. The resources the company used are the workers with daily wage of $20 and a machinewhich it rents from the machine supplier at $20 per day. The company operates in a small factory by paying a daily rent of $10. The number of canned drinks it produces depends on the number of workers it hires per day, as shown in the table below Number of Workers Fixed Cost Variable Cost Quantity produced Total Revenue Total Cost Total Profit 0 30 0 0 0 30 -30 1 30 20 10 20 50 -30 2 30 40 30 60 70 -10 3 30 60 65 130 90 40 4 30 80 80 160 110 50 5 30 100 88 176 130 46 6 30 120 93 186 150 36 (i) Compute the optimal output and the profit or loss if the landlord increases the rent of factory to $20 per day (ii) Assume that the rental of factory remains at $10 per day but the government imposes a production tax of $0.50 per canned drink. Compute the optimal output and the profit or loss for the company.…
A VWQ6 Q9 B Unanswered The table below shows the total product from different levels of labor. Suppose the hourly wage rate for labor is $30 per hour. What is the Total Variable Cost of producing 50 units? $30 $1,500 C $60 D $2 Units of Labor (hours) 0 1 2 3 4 Total Product X 0 20 50 80 100 pure water, perfect te
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Innovations in technology that cause an increase in the marginal product of a resource will: O increase the marginal revenue product O increase the marginal resource cost O decrease the marginal revenue product decrease the demand for the resource
Gull Roza is a florist specializing in floral arrangements for weddings, graduations, and other events. Gull Roza has a fixed cost associated with space and equipment of $50 per day. Each worker is paid $80 per day. The daily production function for Gull Roza is shown in the accompanying table. Quantity of Labor (workers) Quantity of floral arrangements 0 0 1 110 2 200 3 270 4 300 5 320 6 320 Calculate the marginal product of each worker. Calculate the marginal cost, Average total cost, and average variable cost of each level of output.
Suppose Mr. Saad is a producer of Lola Loo chocolate, following is the information available of his production plant. Quantity of Labour (L) Quantity of 1 2 3 4 5 Capital (K) 10 15 25 100 50 20 30 40 50 75 50 75 100 125 150200250 300 75 90 105 120 2 30 50 62 15 If K and Lare imperfect substitutes and complements from the information above draw at least three isoquant (map) and identify the level of production. H73 4
The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. The following table shows the total and marginal products of labor for a trawler. Crew Size (L) (No. of Workers) Amount of Fish Caught per Week ( Q) (Hundreds of Lbs) Marginal Product ( MPL) (Hundreds of Lbs) 5 15 10 30 15 55 25 80 25 95 15 105 10 110 5 10 110 11 105 -5 12 95 -10 Suppose the owner of the trawler can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $1,125 per week. Assuming that the owner of the trawler is interested in maximizing profits, what is the optimal crew size? workers |2 3 4 5 67 8 9을
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Ch07. ppt (Compatibility Mode] - Microsoft PowerPoint SIGN ANIMATIONS SLIDE SHOW TRANSITIONS REVIEW VIEW -|24 - AA E-E-E . lh Text Direction Align Tert- Shape Fil- 7 Shape Outline- Convert to SmAn- } Stvles - O Shape Effects Layout Reset BIUS A- Aa A Arrange Quick Section- es Font Paragraph Drawing Optimal Level of Variable Input Usage • Define the following • Total Revenue Product (TRP) = Q•P • Marginal Revenue Product (MRP) = ATRP A(Q P) P•AQ = P• MP AX AX AX • Total Labor Cost (TLC) =w•X ATLC = W • Marginal Labor Cost (MLC) = AX 2003 Prentice Hall Business Publishing Managerial Economics, 4/e Keal/Young NOTES COMMENTS Mehwish Bhatti's screen