Suppose total ouput is 30, total input is 2, and the cost of input is $1.00...
Figure 13-2 The figure depicts a total cost function for a firm that produces cookies. Total Cost Quantity of Output (# of cookies) Refer to Figure 13-2. What does the changing slope of the total-cost curve reflect? decreasing average variable cost decreasing average total cost decreasing marginal product O decreasing marginal cost The figure depicts a total cost function for a firm that produces cookies. Total Cost Quantity of Output (# of cookies) Refer to Figure 13-2. What is the...
2. Suppose that a hypothetical economy has the following relationship between its real output and the input quantities necessary for producing that output: Input Quantity Real GDP 150.0 $400 112.5 300 75.0 200 a. What is productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $2? c. In what di rection would a $1 increase in input price push the economy's aggregate supply curve? What would cause such an...
PLEASE ANSWER EACH QUESTION 1 Thru 4 1. Question The productivity of a resource in influenced by all but which one of the following? Select one: a. Resources prices. b. Productivity of other resources. c. Technology. d. Manaderial ability. 2. Question The social disadvanatges of a purely competitive market situation do not include which one of the following? Select one: a. The industry is slow in adopting improved technology tht has already been developed. b. The product lacks the variety...
Table: Demand and Total Cost Table: Demand and Total Cost Quantity Price per (megawatts) Megawatt Total Cost $550 $1.000 500 1.075 450 1.200 1.375 350 1.600 300 1.875 250 2200 2.575 400 200 Use Table: Demand and Total Cost. Lenoia runs a natural monopoly firm producing electricity for a small mountain village. The table shows Lenoia's demand and total cost of producing electricity. The profit-maximizing quantity of electricity for her to produce is megawatts. O2 os Figure: The Monopolist Price,...
4. Suppose a firm uses only one input (L) to produce output y, with the production function y L Suppose the firm sells its output in a competitive market at price p, and buys labor in a competitive market at price w. a. Write an expression for the profits of the firm as a function of w, p, and L. b. What is the marginal cost of hiring an additional unit of labor? Graph the marginal cost of labor curve...
QUESTION 1 Suppose that the price of labor, the only variable input used in production, increases from $100 to $120 per day. The effect on costs will be: O a parallel shift in the total cost curve O a parallel shift in the fixed cost curve a parallel shift in the marginal cost curve a shift in total cost by different amounts for different quantities QUESTION 2 Your company produces peanut butter. An increase in the price of peanuts will...
When an input represents a larger proportion of a firm's total costs, then O A. demand for the input will tends to be less elastic. O B. demand for the input will tends to be more elastic. O C. the input demand will not vary significantly with a change in input price. O D. the usage of the input cannot be varied in the production function. If the price of labor increases, the typical perfectly competitive firm in the short...
Suppose a firm doubles the amount of all of its factors of production and, as a result, output increases from 100 to 300 units. This firm is operating under Increasing cost Decreasing costs Long-run decreasing returns Decreasing total cost Diseconomies of scales Positive economic profit is The excess of revenues over implicit costs A signal for firms in other industries to expand their output A signal for resources to enter the industry in the long run The excess of revenues...
Consider the following short-run production function (where L = variable input, Q = output): Q=6L−0.4L2 Suppose that output can be sold for $10 per unit. Also assume that the firm can obtain as much of the variable input (L) as it needs at $20 per unit. What is the marginal revenue product function (MRPL)? $20 $60−$8L $10 $6−$0.40L What is the marginal factor cost function (MFCLMFCL)? $6−$0.40L $60−$8L $10 $20 What is the optimal value of L, given that the...
2. Suppose the production function for widgets is given by where q represents the annual quantity of widgets produced, K represents the annual capital input, and L represents the annual labor input. a. Suppose K 10, write down the expressions for the total product and the average product of labor. At what level of labor input does average productivity reach a maximum? How many widgets are produced at that point? b. Again, assuming that K-10, graph the average product of...