Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 7, Problem 36CTQ
Retune to Table 7.2. In the top half of the table, at what point does diminishing marginal productivity kick in? What about in the bottom half of the table? How do you explain this?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Refer to Table 7.2 above. At what point does diminishing marginal productivity kick in? Explain.
EM.19
Billy is an economics student and can use a practice exam to test his knowledge. After one hour of studying, he scores 50% on the exam. After two hours, he scores 75%. After three hours, he scores 85%. After four hours, he scores 90%. What economic concept is most clearly illustrated here?
a
diminishing marginal returns
b
worker fatigue
c
input inefficiency
d
opportunity cost
What is the technological difference between straight line and strictly concave production curves? Show and explain.
Chapter 7 Solutions
Principles of Economics 2e
Ch. 7 - A firm had sales revenue of 1 million last year....Ch. 7 - Continuing from Exercise 7.1, the films factory...Ch. 7 - The WipeOut Ski Company manufactures skis for...Ch. 7 - Based on your answers to the WipeOut Ski Company...Ch. 7 - If two painters can paint 200 square feet of wall...Ch. 7 - Return to the problem explained in Table 7.13 and...Ch. 7 - Suppose the cost of machines increases to 55,...Ch. 7 - Automobile manufacturing is an industry subject to...Ch. 7 - What are explicit and implicit costs?Ch. 7 - Would you consider an interest payment on a loan...
Ch. 7 - What is die difference between accounting and...Ch. 7 - What is a production function?Ch. 7 - What is the difference between a fixed input and a...Ch. 7 - How do we calculate marginal product?Ch. 7 - What shapes would you generally expect a total...Ch. 7 - What are the factor payments for land, labor, and...Ch. 7 - What is the difference between fixed costs and...Ch. 7 - How do we calculate each of the following:...Ch. 7 - What shapes would you generally expect each of the...Ch. 7 - Are there fixed costs in the lung-run? Explain...Ch. 7 - Are fixed costs also sunk costs? Explain.Ch. 7 - What are diminishing marginal returns as they...Ch. 7 - Which costs are measured on per-unit basis: fixed...Ch. 7 - What is a production technology?Ch. 7 - In choosing a production technology, how will...Ch. 7 - What is a long-run average cost curve?Ch. 7 - What is the difference between economies of scale,...Ch. 7 - What shape of a long-run average cost curve...Ch. 7 - Why will firms in most markets be located at or...Ch. 7 - Small Mom and Pop firms, like inner city grocery...Ch. 7 - A common name for fixed cost is overhead. If you...Ch. 7 - How does fixed cost affect marginal cost? Why is...Ch. 7 - Average cost curves (except for avenge fixed cost)...Ch. 7 - What is the relationship between marginal product...Ch. 7 - It is clear that businesses operate in the short...Ch. 7 - Retune to Table 7.2. In the top half of the table,...Ch. 7 - How would an improvement in technology, like the...Ch. 7 - Do you think that the taxicab industry in large...Ch. 7 - A firm is considering an investment that will earn...Ch. 7 - Return to Figure 7.7. What is the marginal gain in...Ch. 7 - Compute the average total cost, average variable...Ch. 7 - A small company that shovels sidewalks and...
Additional Business Textbook Solutions
Find more solutions based on key concepts
What is the relationship between management by exception and variance analysis?
Cost Accounting (15th Edition)
Ravenna Candles recently purchased candleholders for resale in its shops. Which of the following costs would be...
Financial Accounting (12th Edition) (What's New in Accounting)
Define cost pool, cost tracing, cost allocation, and cost-allocation base.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Lavell started out mowing lawns in the neighborhood when he was 13 years old. He did such good work that, witho...
Principles of Accounting Volume 2
S4–9 Identifying temporary and permanent accounts
Learning Objective 3
For accounts listed, identify whether t...
Horngren's Accounting (12th Edition)
What is the best way to control labor costs? What tools are discussed in the chapter that may be used to help c...
Construction Accounting And Financial Management (4th Edition)
Knowledge Booster
Similar questions
- At low levels of production, marginal productivity of labor increases as labor increases. At high levels of production, marginal productivity of labor decreases as labor increases. Are these two statements contradictory? Explain.arrow_forwardThe law if diminishing marginal returns is the rate at which one input maybe substituted for another input in the production process? True Falsearrow_forwardWhat impact do sewing robots have on capital per worker and human capital per worker? What impact does technology have on the use of capital and human capital?arrow_forward
- Consider the factors of production that go intoa fast-food restaurant. Give an example of land,labor, and capital.arrow_forwardContrast the concepts diminishing marginal productivity and decreasing returns to scale with relevant examples?arrow_forwardWhat is the difference between the labor intensive production and capital intensive production approach.arrow_forward
- Describe where the law of diminishing marginal productivity begins for We R' Write. We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not? If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why? Number of Workers per Day Pens Produced per Day Average Product Marginal Product Price per Pen Total Value Product Average Value Product Marginal Value Product Price of Worker per Day 0 0 --- --- $3.50 $0.00 --- --- $560 15 1,000 66.67 67 $3.50 $52.50 $233.33 $233.33 $560 30 2,700 90.00 113 $3.50 $105.00 $315.00 $396.67 $560 45 5,100 113.33 160 $3.50 $157.50 $396.67 $560.00 $560 60 7,900 131.67 187 $3.50 $210.00 $460.83 $653.33 $560 75 12,000 160.00 273 $3.50 $262.50 $560.00…arrow_forwardWhat explains the shape of the average and marginal cost curves? Is it linked to any production relationships?arrow_forwardWhat is one negative aspect of technology on productivity? Technology allows for more products to be made in a shorter amount of time. Technology allows companies to reduce the cost of making products. Technology allows for more efficient ways to produce goods. This may lead to the elimination of jobs. Technology allows for workers to work from home, which leads to fewer call-offs due to illness, inclement weather, or childcare-related issues.arrow_forward
- When do you think production is on the part of increasing returns on the production function? Explain.arrow_forwardIdentify the three important factors in the production system. Explain each in your own words. Labor - Capital - Entrepreneur- land-arrow_forwardIn your "toast" production function, you used your labor and a toaster as capital. Keeping capital constant, i.e., with only one toaster if you keep adding the labor, i.e., bring your friends to help you with making toasts, which of the following might happen? Group of answer choices Marginal returns to labor will be a constant. Marginal returns to labor will keep decreasing and, after a point, it will become negative. Marginal returns to labor will keep increasing. Marginal returns to labor will keep increasing and then be a constant.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax