Suppose a firm did riveted a useful production technique. We can expect: a. The firm to hire fewer workers b. The firms labour demand curve to shift right c. The firms labour demand to shift left d. The firms labour curve to remain unchanged
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Suppose a firm did riveted a useful production technique. We can expect:
a. The firm to hire fewer workers
b. The firms labour demand curve to shift right
c. The firms labour demand to shift left
d. The firms labour curve to remain unchanged
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Solved in 2 steps
- 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 workerThe short run is a period of time in which: The quantities of some resources (inputs) are fixed. The amount of output is fixed. Prices and wages are fixed. O Nothing the firm does can be altered.Suppose a firm has two plants, A and B, each producing the same product but using different production processes. After analyzing production reports a UNC Charlotte intern realizes that the marginal product of labor in plant B is greater than the marginal product of labor in plant A. What should he recommend as a short-run remedy? a.Move labor from plant A to plant B. b.Move labor from plant B to plant A. c.Add more capital to plant B. d.It cannot be determined from the information given.
- The local ice cream shop is trying to figure out how many workers to hire, and part of the decision will be based on the marginal product of labor. The following table shows a short-run production function for quantity of ice cream tubs produced. Diminishing marginal returns begins after hiring which worker? Workers hired Quantity of ice cream tubs produced 1 110 2 200 3 270 4 300 5 320 16 330 300 Seventh Sixth Second FourthEconomics The company A produces cars using three inputs, labour (L), capital (K)and talent (X). ACME's production function is Y(X, L, K) - х0.5LO.25к0.25 This problem only deals within the short run, where ACME's amount of capital is fixed at K = 9. Denote by w the labour wage, by r the price of capital and by q the price of talent. a) Find A's conditional input demand for talent and labour. b) Find A's cost function. What is its shutdown price (as a function of w, rand q)? c) Find A's short run supply function. Draw it together with any other curves. -х0.5L0.25 к0.25 %3DIf a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal product of capital equals 7 tons of output and the cost of capital is $14 per unit, then A. The cost of labor must be $1/7 B. The cost of labor (wage rate) must be $2 C. The cost of labor must be $7 D. The cost of labor must be $14 as well
- Which of the following determines the firm's demand curve for labor? a.The size of the labor force b.The marginal product of labor c.The total product of labor d.The average product of laborNimbus,Inc.,makes brooms and then sells door to door.Here is the relationship between the number of workers and Nimbus's output during a given day:a.Fill in the column of marginal products.What patterns do you see?How might you explain it?b.A workers costs $100 a day, and the firm has fixed cost of $200.Use this information to fill in the column for total cost.c.Fill in the column for average total cost.What pattern do you see?d.Now fill in the column for marginal cost.What pattern do you see?e.Compare the column for marginal product with the column for marginal cost.Explain the relationship.f.Compare the column foraverage total cost with the column for marginal cost.Explain the relationship.Suppose that labor is the only input used by a perfectly competitive firm.The firm's production function is as follows:a.Calculate the marginal product for each additional worker.b.Each unit of output sells for $10.Calculate the marginal product for each additional worker.cCompute the demand for schedule showing the number of workers hired.
- GM cuts jobs at its Australian manufacturing unit GM will cut 500 jobs, or about 12% of its workforce, at its Australian plant because of a sharp fall in demand for its locally-made "Cruze" small car. Source: The Wall Street Journal, April 8, 2013 As GM cuts its workforce, how will the marginal product and average product of a worker change in the short run? Suppose that before the cuts the marginal product of GM workers is below their average product. As the number of workers decreases, the marginal product of a GM worker and the average product of a GM worker in the short run. increases; decreases does not change; does not change decreases; decreases increases; increases decreases; increasesDistinguish between the following and show their importance in production theory emphatically a. Short run and long run b. Variable input and fixed inputAt what output does the firm reach minimum average variable cost? Multiple Choice 100 600 80 6,000 8,000 D
