Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 7, Problem 3SQ
To determine
The impact of decreasing marginal product of labor.
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2.1 Discuss the relationship that exists amongst the three short-run total cost curves. Motivate your answer with the aid of a diagram. (15)2.2 Explain in detail, the shape of the individual supply of labor curve. Illustrate your answer with the aid of a diagram.
Which of the following describes the law of diminishing returns to labor?
A.
When one more worker got hired their marginal product was negative
B.
When one more worker got hired total product of the firm went down
C.
When one more worker got hired their marginal product was lower than the marginal product of the previous worker
A firm produces good Y with just 2 factors: Capital which is fixed in supply and labour which is variable. Identify the stages of production in the diagram and explain why the firm still hire labour even though it is in the range of diminishing returns.
What is the number of workers after which diminishing marginal returns starts? Is this a short run or long run phenomenon?
Labour (units)
1
2
3
4
5
6
7
8
9
Total Product (TP) in Units
8
15
24
30
35
37
38
38
36
Average Product (AP) in units
8
7.5
8
7.5
7
6.17
5.43
4.75
4
Marginal Product
(MP) in units
8
7
9
6
5
2
1
0
-2
Chapter 7 Solutions
Economics For Today
Ch. 7.5 - Prob. 1YTECh. 7 - Prob. 1SQPCh. 7 - Prob. 2SQPCh. 7 - Prob. 3SQPCh. 7 - Prob. 4SQPCh. 7 - Prob. 5SQPCh. 7 - Prob. 6SQPCh. 7 - Prob. 7SQPCh. 7 - Prob. 8SQPCh. 7 - Prob. 9SQP
Ch. 7 - Prob. 10SQPCh. 7 - Prob. 11SQPCh. 7 - Prob. 1SQCh. 7 - Prob. 2SQCh. 7 - Prob. 3SQCh. 7 - Prob. 4SQCh. 7 - Prob. 5SQCh. 7 - Prob. 6SQCh. 7 - Prob. 7SQCh. 7 - Prob. 8SQCh. 7 - Prob. 9SQCh. 7 - Prob. 10SQCh. 7 - Prob. 11SQCh. 7 - Prob. 12SQCh. 7 - Prob. 13SQCh. 7 - Prob. 14SQCh. 7 - Prob. 15SQCh. 7 - Prob. 16SQCh. 7 - Prob. 17SQCh. 7 - Prob. 18SQCh. 7 - Prob. 19SQCh. 7 - Prob. 20SQCh. 7 - Prob. 21SQCh. 7 - Prob. 22SQCh. 7 - Prob. 23SQCh. 7 - Prob. 24SQCh. 7 - Prob. 25SQ
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Similar questions
- Define marginal physical product of labor (MPP) and marginal cost of product (MC). How are these two related? Why is MC called the mirror image of MPP? Explain. Answer must correct. Describe it step by step. Don,t copy from anywhere. Use word file for answer. Use graph. word limit minimum 350 .arrow_forwardWhy does the marginal cost of production typically increase as the amount of output produced increases? a.A fixed factor of production causes diminishing marginal product b.Increasing returns to scale c.There are no fixed factors of production d.Decreasing returns to scalearrow_forwardIn a short-run production process, a diminishing marginal product of labor explains why marginal cos is? 1.A negative and falling 2.zero 3.positive but falling D. positive and risingarrow_forward
- The hiring of labour with fixed factor of production under short run after sometimes leads to increase in short only.whats your opinion at what stage of production producer should make addition in labour. Identify which concept in economics explain the whole situation and why it happens?arrow_forwardFor a profit-maximizing competitive firm, the value of marginal product curve is A. always rising. B. falling only when marginal product is rising. C. the labor supply curve. D. the labor demand curve.arrow_forwardThe marginal product intersects average product at the point where average product is maximum. Select one: True O Falsearrow_forward
- Additional questions:The labor cost per day of hiring two workers is $_____?The total cost per day when three workers are hired is $_____?The marginal product per day of the fourth worker is _____ cookies.arrow_forwardUsing a diagram explain what happens to the long-run demand curve for labor if the price of labour increases? Decompose the changes into scale and substitution effects.arrow_forward1.The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. What’s your opinion at what stage of production producer should make addition in labour, identify which concept in economics explains the whole situation, justify your answer why it happens with the help of table and diagrams.arrow_forward
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