MICROECONOMICS LLW/CNCT >BI<
21st Edition
ISBN: 9781260531350
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 9, Problem 6RQ
To determine
Calculate different costs.
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Students have asked these similar questions
The production function for a widget-manufacturing firm is given by q = 9K0.5L0.5, where q is the number of widgets produced each
hour, K is the number of specialized staplers (which is fixed at 4 in the short run), and L is the number of employees. What is the
average product of labor at L = 36?
O 18
O
9
1.5
3
O none of the above
Rita quit her job as dentist where she earned $150,000/year and converted a house that she owns into a museum for her collection of clocks. Before doing this, Rita had been renting the house out for $20,000/year. Rita hired 2 employees for her museum at a total cost of $50,000/year, and had to pay $10,000/year for utilities.
Her museum brought in revenues of $125,000 the first year. Someone even offered her $1,000,000 to purchase her entire collection of clocks. She declined this offer.
1) What is Rita's accounting profit during the year?
2. What is Rita's economic profit? Please explain.
Betsy's Bangles produces and sells woven bracelets. The table
shows information about the number of workers employed,
daily bracelet production, and the marginal product of labor
(MPL). Use this to answer the questions.
You must calculate the bracelet values that are absent to answer
the question.
How many bracelets can be produced by 5 workers?
bracelets from 5 workers:
Workers
0
1
2
3
4
5
Bracelets
0
1
*
39
*
*
MPL
www
1
26
12
8
4
bracelets
Chapter 9 Solutions
MICROECONOMICS LLW/CNCT >BI<
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Indicate how each of the following would shift the...Ch. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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Similar questions
- Suppose that firms face the following production function: Q = L1/3³K²/3. Suppose also that price of labor (L)=w31 and price of capital (K)=r=16. If the firm wants to produce 120 units of output, what is the optimum amount of labor, capital and associated cost respectively? 720, 90, 216O O120, 15, 360 240, 30, 720 480, 60, 1440arrow_forwardSuppose a firm has a production function q = f(L,K) = 3L + 2K, and the factor prices are w = $3 and r = $3. If the firm wants to produce 60 units at the minimum cost possible, how much would it cost to produce those 60 units? (hint: remember perfect substitute technology yields corner solutions for L and K). O $60 O $90 $120 $30 O $150arrow_forwardQuestion 19 widget-manufacturing The production function for a firm is given by q = 9K0.5L0.5, where q is the number of widgets produced each hour, K is the number of specialized staplers (which is fixed at 4 in the short run), and L is the number of employees. What is the marginal product of labor at L = 9? O 18 O 3 none of the abovearrow_forward
- The Red Racer Company and the Blue Bomber Company are each capable of minimizing cost and producing 4,000 bicycles per month. Red Racer's factory is located in an area where the cost of labor is significantly less and the cost of capital is significantly more than the costs of labor and capital for Blue Bomber. Assume that each company has access to the same technology to produce bicycles and draw an isoquant/isocost diagram to illustrate why the cost-minimizing combinations of inputs for these companies are different. 1.) Using the line drawing tool, draw and label the isocost line for Red Racer's factory. 2.) Using the point drawing tool, plot and label the equilibrium value for Red Racer's factory. 3.) Using the line drawing tool, draw and label the isocost line for Blue Bomber's factory. 4.) Using the point drawing tool, plot and label the equilibrium value for Blue Bomber's factory. Note: Carefully follow the instructions above and only draw the required objects. Units of capital…arrow_forwardDiane's Donuts will begin selling donuts next week. Diane figures that the average variable cost to make each donut will be $0.25. She has paid $20,000 for the donut-making machinery and one year's rent. Refer to Situation 22-1. What will Diane's total variable costs be if she sells 34,500 donuts in one year? $10,950 $9,450 $8,625 $12,500 0 Oarrow_forward. Suppose that a firm’s production function is . The cost of a unit of labor is $20 and the cost of a unit of capital is $80. The firm is currently producing 100 units of output, and has determined that the cost-minimizing quantities of labor and capital are 20 and 5 respectively. Graphically illustrate this situation on a graph using isoquants and isocost lines. The firm now wants to increase output to 140 units. If capital is fixed in the short run, how much labor will the firm require? Illustrate this point on your graph and find the new costarrow_forward
- Lesson 7- Production Question 10arrow_forwardMay I know the correct answer???arrow_forwardQuestion 4 of 20 Total Average Average Average Output Total Variable Marginal Variable Fixed Total (Q) Fixed Cost Cost Total Cost Cost Cost Cost Cost $0 $500 $200 1 $200 $200 $700 2 $500 $300 $800 $250 $200 3 $500 $1,000 $167 $333 4 $500 $800 $200 $125 For the cost data shown above, what is this firm's Average Total Cost (ATC) when Output is 4? $325 $200 $350 $500arrow_forward
- E2arrow_forwardThe table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run. Plant 1 Plant 2 Plant 3 Output ATC Output ATC Output ATC 10 $ 10 10 $ 15 10 $ 20 20 9 20 10 20 15 30 8 30 7 30 10 40 9 40 10 40 8 50 10 50 14 50 9 What is the long-run average cost of producing 10 units of output? Multiple Choice $10 $15 $20 $45arrow_forwardQUESTION 6 At a total cost of $3,100, a company can produce 4 scooters. It has fixed costs of $1,000. If it produces 5 scooters, the costs of production total $3,800. Which of the following statements is true? O Variable costs of producing 4 scooters total $3096. O The average (or per unit) cost of producing 5 scooters is $800 per scooter The total cost curve for this firm is downward sloping Fixed costs will be higher when it produces 5 scooters The marginal cost of producing the fifth scooter is $700arrow_forward
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