Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Question
Chapter 11, Problem 8SQ
To determine
Derived
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Students have asked these similar questions
A firm in a competitive market should hire workers up to the point where the value of the marginal product of labor =
a. the wage
b. total revenue
c. total cost
d. total profit
If the marginal revenue earned by a firm due to an additional unit of worker is less than the marginal cost of hiring him, _____.
a.the firm should not hire the worker
b.the firm should hire the worker
c.the firm should not operate in the long run
d.the firm should not differentiate its products
Which of the following determines the firm's demand curve for labor?
a.The size of the labor force
b.The marginal product of labor
c.The total product of labor
d.The average product of labor
Chapter 11 Solutions
Microeconomics For Today (MindTap Course List)
Ch. 11.3 - Prob. 1YTECh. 11 - Prob. 1SQPCh. 11 - Prob. 2SQPCh. 11 - Prob. 3SQPCh. 11 - Prob. 4SQPCh. 11 - Prob. 5SQPCh. 11 - Prob. 6SQPCh. 11 - Prob. 7SQPCh. 11 - Prob. 8SQPCh. 11 - Prob. 9SQP
Ch. 11 - Prob. 10SQPCh. 11 - Prob. 11SQPCh. 11 - Prob. 1SQCh. 11 - Prob. 2SQCh. 11 - Prob. 3SQCh. 11 - Prob. 4SQCh. 11 - Prob. 5SQCh. 11 - Prob. 6SQCh. 11 - Prob. 7SQCh. 11 - Prob. 8SQCh. 11 - Prob. 9SQCh. 11 - Prob. 10SQCh. 11 - Prob. 11SQCh. 11 - Prob. 12SQCh. 11 - Prob. 13SQCh. 11 - Prob. 14SQCh. 11 - Prob. 15SQCh. 11 - Prob. 16SQCh. 11 - Prob. 17SQCh. 11 - Prob. 18SQCh. 11 - Prob. 19SQCh. 11 - Prob. 20SQ
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- If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal product of capital equals 7 tons of output and the cost of capital is $14 per unit, then A. The cost of labor must be $1/7 B. The cost of labor (wage rate) must be $2 C. The cost of labor must be $7 D. The cost of labor must be $14 as wellarrow_forwardWebby Inc. is a web development company. Webby's monthly production function for developing websites is given in the table below. a. Fill in the marginal product column. Instructions: Enter your answers as a whole number. Progranners Hebsites Marginal Product 14 20 24 26 b. Marginal product diminishes after the (Click to select) programmer.arrow_forwardThe demand curve for a factor of production will be A. perfectly elastic if the factor is unique or it's difficult to substitute for other factors. B. perfectly elastic if its marginal product declines at constant rate. C. more elastic the more slowly its marginal product declines. D. less elastic if other factors can easily be substituted for the factor. E. less elastic if its marginal product declines slowly as more of that factor is employed.arrow_forward
- Economics Corner Coffe sells coffee at $2 and can rent espresso machines at $500 per month. It has the following production schedule: Calculate the marginal product and the value of the marginal product of each robot. Use only whole numbers. Number of Machines. Total Product Marginal Product. Marginal Product Value 500 2 700 850 950 1000 4 6 1025 How many machines should you rent? $_arrow_forwardb. Manton Bakery is a company that bakes bread. Here is the relationship between the number of workers at the bakery and Manton's output in a given day: Workers 0 1 2 3 4 5 6 7 Output loaves 0 20 50 90 120 140 150 155 Marginal Total Average Product Cost Total Cost Marginal Cost (i) Fill in the column of marginal product. What pattern do you see? How might you explain it? (ii) A skilled baker costs £100 a day, and the firm has fixed costs of £200. Use this information to fill in the column for total cost. Fill in the columns for average total cost and marginal cost. What patterns do you see? (iii) Compare the column for average total cost and the column for marginal cost. Explain the relationship.arrow_forwardQuantity of Labor (workers) Total Product (units per hour) 0 12 34 56 0 259 151817 The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the worker because A) 4th; the average product of labor is also increasing B) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker C) 3rd; the average product of labor is also increasing D) 5th; output declines with the 6th worker E) 5th; output is maximizedarrow_forward
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