Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 11.A, Problem 9PA
To determine
Technological change,Isoquant- Isocost line graph.
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Draw the total physical product curve on graph below. . Beyond what number of workers do diminishing returns set in?
Fill in the table on the previous page to show the values of APP and MPP in columns (3) and
(4) respectively. (Remember that the MPP values should be between each unit of labour.)
Draw the APP and MPP curves on the graph
Draw a graph showing a set of isoquants that depict capital and labor to be perfect complements (not substitutable at all) in a production function that exhibits constant returns to scale. Be sure to label the input and output levels on the isoquants.
Briefly explain using a graph whether given statement is true or false. “Red Stone Creamery currently hires 5 workers. When it added a sixth worker, its output actually fell. This means that the sixth worker is not as skilled as the fifth worker.
Chapter 11 Solutions
Microeconomics (7th Edition)
Ch. 11.A - Prob. 1RQCh. 11.A - Prob. 2RQCh. 11.A - Prob. 3RQCh. 11.A - Prob. 4PACh. 11.A - Prob. 5PACh. 11.A - Prob. 6PACh. 11.A - Prob. 7PACh. 11.A - Prob. 8PACh. 11.A - Prob. 9PACh. 11.A - Prob. 10PA
Ch. 11.A - Prob. 11PACh. 11.A - Prob. 12PACh. 11.A - Prob. 13PACh. 11.A - Prob. 14PACh. 11.A - Prob. 15PACh. 11 - Prob. 11.1.1RQCh. 11 - Prob. 11.1.2RQCh. 11 - Prob. 11.1.3PACh. 11 - Prob. 11.1.4PACh. 11 - Prob. 11.1.5PACh. 11 - Prob. 11.2.1RQCh. 11 - Prob. 11.2.2RQCh. 11 - Prob. 11.2.3RQCh. 11 - Prob. 11.2.4RQCh. 11 - Prob. 11.2.5PACh. 11 - Prob. 11.2.6PACh. 11 - Prob. 11.2.7PACh. 11 - Prob. 11.2.8PACh. 11 - Prob. 11.2.9PACh. 11 - Prob. 11.2.10PACh. 11 - Prob. 11.2.11PACh. 11 - Prob. 11.2.12PACh. 11 - Prob. 11.3.1RQCh. 11 - Prob. 11.3.2RQCh. 11 - Prob. 11.3.3PACh. 11 - Prob. 11.3.4PACh. 11 - Prob. 11.3.5PACh. 11 - Prob. 11.3.6PACh. 11 - Prob. 11.3.7PACh. 11 - Prob. 11.3.8PACh. 11 - Prob. 11.3.9PACh. 11 - Prob. 11.4.1RQCh. 11 - Prob. 11.4.2RQCh. 11 - Prob. 11.4.3RQCh. 11 - Prob. 11.4.4PACh. 11 - Prob. 11.4.5PACh. 11 - Prob. 11.4.6PACh. 11 - Prob. 11.4.7PACh. 11 - Prob. 11.4.8PACh. 11 - Prob. 11.4.9PACh. 11 - Prob. 11.4.10PACh. 11 - Prob. 11.5.1RQCh. 11 - Prob. 11.5.2RQCh. 11 - Prob. 11.5.3PACh. 11 - Prob. 11.5.4PACh. 11 - Prob. 11.5.5PACh. 11 - Prob. 11.5.6PACh. 11 - Prob. 11.5.7PACh. 11 - Prob. 11.5.8PACh. 11 - Prob. 11.5.9PACh. 11 - Prob. 11.6.1RQCh. 11 - Prob. 11.6.2RQCh. 11 - Prob. 11.6.3RQCh. 11 - Prob. 11.6.4RQCh. 11 - Prob. 11.6.5RQCh. 11 - Prob. 11.6.6PACh. 11 - Prob. 11.6.7PACh. 11 - Prob. 11.6.8PACh. 11 - Prob. 11.6.9PACh. 11 - Prob. 11.6.10PACh. 11 - Prob. 11.6.11PACh. 11 - Prob. 11.6.12PACh. 11 - Prob. 11.6.13PACh. 11 - Prob. 11.1CTECh. 11 - Prob. 11.2CTECh. 11 - Prob. 11.3CTECh. 11 - Prob. 11.4CTE
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Similar questions
- Exhibited in the table below are the two isoquants and the isocost for a hypothetical firm A B C D E F Labor 40 28 18 10 4 0 Capital 1 2 3 4 5 6 Labor 80 38 28 20 14 10 Capital 1 2 3 4 5 6 Labor (P2/unit) 25 20 15 10 5 0 Capital (P5/unit) 0 2 4 6 8 10 In a single graph, please perform the following: A. Draw the Isoquant curve B. Draw the isocost C. Identify the optimal point which is tangent to the isoquant line. Please mark the spot as X. D. How many units of capital and labor is the optimal combinationarrow_forwardThe following table gives the output achievable for various combinations of inputs. There are only two inputs used in production, labour and capital. labor input capital input 1 2 3 4 5 1 20 40 55 60 65 2 40 50 65 70 75 3 55 65 75 80 85 4 60 70 80 90 95 5 65 75 85 95 100 Explain the meaning of an isoquant . Draw the isoquants for the output level of 65 and 75 on the same graph.Define and explain the returns to scale for production with those inputs given above table.arrow_forwardThe 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.arrow_forward
- Explain Isoquant curve?arrow_forwardThe average product of labour is the output per employee often called labour productivity. Use the information in table 17.1 to answer the question below. Table 17.1 Output units Number of employees 1 000 10 2 500 20 6 000 30 7 000 40 8 000 50 As the number of employees increases from 10 to 50 the average product of labour: a) Is constant b) Falls then rises c) Rises d) Fallsarrow_forwardDraw two isoquants for this firm. On the same graph, draw and label firm α’s expansion path at these prices of capital and labor.arrow_forward
- The degree of convexity of an isoquant determines the degree of substitutability of factors of production. Do you agree? Explain.arrow_forwardDraw a total production graph where you indicate how total production changes whenthe number of workers increase. Use the total production graph to explain the differencebetween marginal product and diminishing marginal productarrow_forwardWhat is meant by the average physical product (APP) and marginal physical product (MPP) of labour? .................................................................................................................................................... Fill in the table on the previous page to show the values of APP and MPP in columns (3) and (4) respectively. (Remember that the MPP values should be between each unit of labour.) (c.) Draw the APP and MPP curves on the graph below.arrow_forward
- Using the information given in Table 5.2 (page 136), draw the isoquant correspond- ing to an output level of 20. Starting from L = 4 and K = 1, how much extra capital is needed to keep output constant if the labor is reduced by one unit to L = 3? How much extra capital is needed to keep output constant if the labor is reduced by one unit to L = 2 Table 5.2 Capital K L 1 2 3 4 5 6 1 10 14 17 20 22 24 2 14 20 24 28 32 35 3 17 24 30 35 39 42 4 20 28 35 40 45 49 5 22 32 39 45 50 55 6 24 35 42 49 55 60 Capital K is on the first column, and Labor L is on the first row.arrow_forwardWhen analyzing isoquants, if the marginal product of all inputs double, how would that change the input mix you would use to produce a given level of output?arrow_forwardI need help with econ multiple hw questions asap! 101) Typically, as a firm hires additional workers, what happens to the marginal product of labour and the value of the marginal product of labour? A. The marginal product of labour and the value of the marginal product of labour both decrease. B. The marginal product of labour decreases, and the value of the marginal product of labour increases. C. The marginal product of labour stays constant, and the value of the marginal product of labour decreases. D. The marginal product of labour decreases and the value of the marginal product of labour stays constant. 100) If the price of airline tickets falls, what will happen to the demand curve for flight attendants? A. The slope of the demand curve will decrease. B. It will shift to the left. C. It will shift to the right. D. The slope of the demand curve will increase.arrow_forward
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