Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184890
Author: PINDYCK
Publisher: PEARSON
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Question
Chapter 6, Problem 7E
To determine
To determine the marginal product of capital.
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The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal rate of technical substitution of hours of labor for hours of machine capital is 1/4. What is the marginal product of labor?
If the marginal product of labor is 25 and the marginal product of capital 10, what is the marginal rate of technical substitution of labor for capital?
An economy has the following Cobb-Douglas production function: ?=100?^(1/3)?^(2/3) . The economy has 125 units of capital and 64 units of labor.
d. Calculate the marginal product of capital MPK.
e. Calculate the marginal product of labor (MPL).
Chapter 6 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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- A firm's marginal product of labor is 5 and its marginal product of capital is 4. If the firm adds one unit of labor, but does not want its output quantity to change, the firm should: use five fewer units of capital. add 1.25 units of capital. use 0.8 fewer units of capital. use 1.25 fewer units of capital.arrow_forwardUse the Cobb-Douglas production function to show that when the number of units of labor and the number of units of capital are doubled, the production level is also doubled.arrow_forwardF(L, K) = LK^3 and F(L,K) = L+3K for each of these production functions: a) draw the corresponding graph b) calculate the marginal product of labor and capital c) discuss if each marginal product is diminishing, constant or increasing d) calculate the marginal rate of technical substitution e) calculate if the function exhibits constant, increasing, or diminishing returns to scalearrow_forward
- What is the difference between total and marginal product? Total product is the output produced; marginal product is the change in total output with respect to the change in one unit of output. Total product is only related to revenue while marginal product is only related to cost. They are the same; there is no difference. Total product is the change in total output with respect to the change in one unit of output; marginal product is the output produced.arrow_forwardIf the total product of two workers is 80 and the total product of three workers is 90, then the average product of the three workers is ________ and the marginal product of the third worker is ________. a. 20; 30 b. 160; 110 c. 30; 10 d. 20; 3.33 e. All the other answers are wrong.arrow_forwardComplete the following table by finding total product (tp), Average product (ap), Marginal product (mp) and draw a graph of tp, ap, mp and also explain the stage of production input of labor Total Product Average Product Marginal Product (L) (tp) (ap) (mp) 0 0 1 8 2 18 3 25 4 30 5 33 6 34arrow_forward
- Given that the level of labour is 10, the total production is 1,200, and the marginal product of labour is 200, what is the average product of labour?arrow_forwardSuppose that the production function for compact disc player is Q=100L 0.6K 0.4 Where ? is the total output, ? is the quantity of labor employed, and ? is the quantity of capital in place. a) Calculate TP, AP, and MP for the sixth, seventh and eighth units of labour employed if capital is fixed at 240units.arrow_forwardIf the marginal product of capital decreases, what happens to the IS curve?(a) It shifts outward.(b) It shifts inward.(c) There is movement along the curve.(d) It remains the same.(e) None of the above.arrow_forward
- Each extra worker produces an extra unit of output up to six workers. As more workers are added, no additional output is produced. Draw the total product of labor, average product of labor, and marginal product of labor curves in a graparrow_forwardThe term defined by more units of the variable factor of production are added to the fixed quantities of the other factors, the additional output generate by the employment of each additional unit of labour decreasesarrow_forward
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