EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 14, Problem 4P
To determine
The marginal product of labor and the marginal product of capital.
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The following figure shows the revenue and cost curves for a firm X.
RM
10
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b.
C.
7
6
LO
5
4
3.5
0
20 25 30
MC
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AVC
AC
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Units
If a firm X achieves productivity efficiency, what will be the total revenuel
generated
At what price will a firm stop operating? Please explain.
If the market price is RM4.00, what is the total profit or total loss.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
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Market for Goods
100
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Demanded
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Demand Price
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50.00
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1. Suppose that Bill owns a vehicle smash repair shop. The table below shows how the quantity of
cars Bill can repair per month depends on the number of workers that he hires. Assume that he
pays each worker $4000 per month and his fixed costs are $6000 per month. Using the information
provided, complete the table.
QUANTITY QUANTITY OF
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WORKERS
MONTH
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AVERAGE
TOTAL COST
Chapter 14 Solutions
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Similar questions
- 4. Various measures of cost Suppose the imaginary company of Roobek is a small, Jackson-based American apparel manufacturer specializing in athleisure. The following table presents the brand's total cost of production at several different quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost (Pairs) (Dollars) (Dollars) 0 1 2 3 4 LO 5 6 120 200 240 285 340 425 540 Fixed Cost Variable Cost (Dollars) (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair)arrow_forwardAnswer the question on the basis of the following cost data. Output Total Fixed Cost Total Variable Cost Average Fixed Cost Average Variable Cost 1 $ 50.00 $ 2 $ 50.00 $ 3 $ 50.00 $ 4 $ 50.00 $ 5 $ 50.00 $ 6 $ 50.00 $ 440.00 $ 7 $ 50.00 $ 560.00 $ 8 $ 50.00 $ 700.00 $ The marginal cost of the fifth unit of output is O 62 O 80 O 78 O 3 100.00 $ 160.00 $ 200.00 $ 260.00 $ 340.00 $ 50.00 $ 25.00 $ 16.67 $ 12.50 $ 10.00 $ 8.33 $ 7.14 $ 6.25 $ 100.00 80.00 66.67 65.00 68.00 73.33 80.00 87.50arrow_forwardRefer to the table below. Note that the first column shows variable costs. Quantity Cost Fixed Total Average Average Variable (in dollars) Costs Costs Total Costs Costs (in dollars per 0 1 2 3 4 LO 5 6 0 15 35 60 90 125 160 (in (in (in dollars unit) dollars) dollars) per unit) 40 40 40 40 55 75 37.5 40 100 33.3 40 130 32.5 40 165 33 40 200 33.3 : 15 17.5 20 22.5 25 26.6 Marginal Costs (in dollars per unit) : 15 20 25 30 35 a If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal? losses equal $15 profts equal $15 profts equal $25 losses equal $25arrow_forward
- Consider the following production schedule: Output per hour Total Cost 0 $ 1 $ $ $ $ 4.00 7.00 8.00 12.50 17.20 $ 22.00 $ 29.00 In the above table, the firm's total fixed cost of production is 2 3 4 5 сл LO 6 $99.70 $4 $29 $3 $7arrow_forwardThe table below shows cost data for producing different amounts of cough syrup. Use the given information to find the missing cost data. Quantity 0 1 2 3 4 LO 5 Total Cost in $ 120 150 206 556 -> Average Fixed Cost in $ Average Variable Cost in $ 60 30 24 9. 30 22.5 28.6666666666667 47.25 -> Marginal Cost in $ 30 15 103 247 ←arrow_forwardSuppose that a business incurred implicit costs of $250,000 and explicit costs of $500,000 in a specific year. If the firm sold 10,000 units of its output at $80 per unit, it's economic profit is O 150,000 O 100,000 300,000 O 50,000arrow_forward
- What is the Average Total Cost (ATC) for producing 84 units of output? Quantity of Labor 5 7.4 7 7.62 0 1 2 3 4 сл 5 LO 6 Total Output 0 16 40 60 72 80 84 Fixed Cost $160 Variable Cost $80 $160 $240 $320 $400 $480 Total Costarrow_forwardLinda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour. Linda’s accounting profit is while her economic profit is. LO9.1 a. $700; $400 b. $300; $100 c. $300; negative $100 d. $1,000; negative $1,100arrow_forwardThe table below shows cost data for WipeOutSki Company which manufactures skis for beginners. If the company's fixed costs are $30, what is the marginal cost of five units of output? Variable Cost Fixed Cost Total Cost Average Variable Cost Average Total Cost Marginal Cost Quantity $30 1 $10 $30 $25 $30 $45 $30 $70 $30 $100 $30 B. $135 $30 O $45.00 O S30.00 O S25.00 2) 3. 4) 69arrow_forward
- MC ATC AVC MARKET PRICE AFC 15 P.arrow_forwardTable 13-18 Marginal Product Variable Fixed Cost Labor Output Cost So $10 200 200 $20 $10 350 $40 S10 13 450 $60 $10 14 50 $80 $10 5 25 $100 $10 530 $120 $10 Refer to Table 13-18. What is the average fixed cost of producing 450 units of output? O 10 O 70 O 21 O.02arrow_forwardYou are the owner and only employee of a company that sets odds for sporting events. Last year you earned a total revenue of $100,000. Your costs for rent and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a return of $20,000 a year. Your economic profit last year was O $50,000 O $60,000 O $10,000 O $30,000arrow_forward
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