Question

You do not need to print this out; it is fine to use your own paper (& ruler). JE07: Given this production function (below), work through the steps to get to "cost curves. This involves DOING production and cost-not just recognizing or guessing/phishing. (Yes, it can be a chore. Spreadsheets can help-but the person using the spreadsheet has to know what they're doing and what kind of results should be expected.) Take it step-by-step T C The following table is the beginning information for an hourly production process: Equip Workers Output APPLIMPPLIFC VC 2 0 0 1 75 2 100 100 380 50 "SA costs 1) Compute Q, APPL& MPPL. Use definitions "forwards" and "backwards"!! → Look for the APPL pattern. Are all workers productive "on average"? → Look for the MPPL pattern. Which worker is the most productive addition to the team? Are all workers equally "marginally productive"? What is the largest team that makes sense to employ? → Graph APPL & MPPL against labor (L on the horizontal axis; both on same graph). Can you verbally describe what is happening to hourly productivity in this company? 2) The rent on the equipment (K) is $6/unit of Equip per hour; the wage paid to workers (L) is $14/worker per hour. Fill in/compute fixed costs (FC), variable costs (VC), and total costs (TC). → Look for a pattern to FC. Why should that make sense? → Look for a pattern to VC. Why does that make sense? Graph VC against labor. → Graph FC, VC, & TC against output (Q on the horizontal axis; all same graph). 3) Make the rest of the cost table on a piece of paper: 5 columns, "Q" and the four per unit costs (average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC)). Look to "see patterns to AFC, to AVC, to MC. Why do these make sense? (Econ, not just math) → Does ATC have a pattern? Which other average cost does it seem most similar to? Graph AVC, ATC, and MC against output (Q on the horizontal axis; all the same graph) → Why was it "okay" to leave out AFC? 4) IMAGINE: What if the rent on the equipment increased? Which graphs would change? What if wages for workers increased? Which graphs would change? JE07 // What chapter concepts & materials were made clearer by doing (not just reading/ watching)? What chapter concepts & materials do you still need help with?! (Be honest. Take pics of your pages (both iPhone and Android have "pic-to-pdf functions (iPhone's is in "Notes" look for the camera icon, Android's is in "Gallery'). Save as PDF. Upload to the Canvas assignment link.

i need answer 1-3 answered please

I need problems 1-4 solved please.

Answer 1

Table of production function---

Equipment	workers	output(TPPl)	APPL (TPpL/labor)	MppL (∆TppL/∆labor
2	0	0	-	-
2	1	75	75	75
2	2	200	100	125
2	3	300	100	100
2	4	380	95	80
2	5	430	86	50
2	6	450	75	20

1) Quantity ( output) or TppL is the total physical productivity of labor which is calculated---

TppL= AppL×labor

*AppL is average physical productivity of labour which is calculated------

TppL/ labor

* MppL is the marginal physical productivity of labor, calculated as----

∆TppL/∆labor

# The AppL pattern shows that all workers are not productive on a average as the average production falls after employing third worker

# MppL pattern shows that worker 2 is the most productive addition.All are not equally marginally productive.The largest team that makes sense to employ is team of 2 workers.

See below graph of production Function ( pattern of AppL & MppL)-------

Wednesday GRAPH of APPL & MPPL 02 Thursday 2015 GRAPH OF TO TFC Tve AP/MP + & APPL + . MIRE TFG Labor GRAPH OF P4 کد 3) دی * VC AGAINST LABOR 20 در 30 دی S لنا GRAPH OF AVC, AFC, ATC, Mc MC ATC Avel & AFC/MO 42 AFC 14 (units 400 45 output 5 lw is how 3 380 bab es: Ambuja MARCH S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 APRIL S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 found NOWLEDO

# Hourly productivity in the company is increasing at the diminishing rate as the pattern of law of variable proportion.

2)Table showing cost components------

Equipment	workers	output	FC	VC	TC	AFC ( FC/ output)	AVC (VC/ output)	ATC ( TC/ output)	MC (∆TC/∆output)
2	0	0	12	0	12	-	-	-	-
2	1	75	12	14	26	•16	•186	•346	•18
2	2	200	12	28	40	•o6	•14	•2	•11
2	3	300	12	42	54	•04	•14	•18	•14
2	4	380	12	56	68	•031	•147	•17	•17
2	5	430	12	70	82	•028	•162	•19	•28
2	6	450	12	84	96	•026	•186	•21	•7*Pattern of AFC----- It is Decreasing with the increase in output.

* Pattern of FC = remains same and calculated as 2× 6= 12$ at each level of output

See graph of VC against labor

See graph of FC, VC,TC against output
Avc is initially Decreasing and then goes on increasing.

MC also initially Decreasing and then increasing.

ATC also initially Decreasing but then increasing.

ATC,AVC both follow same pattern.they are similar almost.

See the graph showing AVC,ATC,MC-----