Using the data provided in the table below, assuming that labor is the only variable input, calculate the marginal produ labor for each labor input and plot the points on the graph below. # Workers (L) Total Output 1 12 2 22 3 30 4 36 5 40

Subpart 4

Question 10 Figure 1 below shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. Number of Cars Repaired 0 2 4 5 Number of Mechanics The production process depicted on the graph exhibits marginal product of labor. O increasing O constant O diminishing 18 17 15 12 8 00

Q3) A chair manufacturer hires its assembly-line labor for $30 an hour and calculates that the rental cost of its machinery is $15 per hour. Suppose that a chair can be produced using 4 hours of labor or machinery in any combination. Graphically illustrate the isoquant and the two isocost lines for the current combination of labor and capital and for the optimal combination of labor and capital.

The Production Function for Wilson Company Economists at the Wilson Company are interested in developing a production function for fertilizer plants. They collected data on 15 different plants that produce fertilizer  PLANT         OUTPUT (TONS)                CAPITAL ($)               LABOUR (HOURS) 1                             605.3                                18,891                                700.2 2                             566.1                               19,201                                651.8 3                              647.1                               20,655                                822.9 4                              523.7                                15,082                               650.3 5                              712.3                                20,300                               859.0 6                              487.5                                16,079                               613.0 7…

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