Homework Answers
(1) Marginal cost of hiring the worker = wage rate = 15
(2) The marginal benefit of hiring the worker for 2nd hour = Total customers in 2 hours - Total customers in 1 hour = 88-70 = 18
(3) Best choice of hiring worker is the last point when,
Wage of additional hour < Marginal benefit of hiring the worker for additional hour * value from additioanl customer
This happens at 4 hours as
15 < 8*3 = 24
1.67 pts Bob's Taco Shack has hired a worker to stand on the corner and wave...
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The information in the table identifies a market basket purchased by the average urban consumer, and...
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100 90 1 2. BO 70 60 COST 50 40 30 20 10 D MR 25...
100 90 1 2. BO 70 60 COST 50 40 30 20 10 D MR 25 35 45 50 1 60 55 OUTPUT Curve 1 should be labeled Curve 2 should be labeled Firms maximize profit where The profit maximizing price for the firm is while the profit maximizing output for the firm is (approximations are fine) Question 27 2 pts Why should a firm never hire a worker when negative marginal returns exist? Hiring an additional worker will increase...
Thinking at the Margin As a given retail establishment hires more workers at a cost of...
Thinking at the Margin As a given retail establishment hires more workers at a cost of $275 per worker they are able to serve increasing amounts of customers based on the following table. You may assume each customer spends on average $5 at this retail establishment otal Workers Customers Benefit (5) Benefit(S) Total Total Marginal Total Marginal Net Benefin (S) Cost (S) 100 1 80 250 310 360 This retail establishment is trying to decide how many workers to hire....
Labor Total product (workers) (wands per day) 0 0 1 10 25 3 45 4 60...
Labor Total product (workers) (wands per day) 0 0 1 10 25 3 45 4 60 5 70 The table above shows Randy's Wands' short-run production function. Randy hires workers at a wage rate of $120 a day and his total fixed cost is $400/day. a) What is the marginal product of the 3rd worker? b) What is Randy's average fixed cost if 25 wands are produced? What is Randy's average variable cost if 60 wands are produced? c) d)...
Number of Workers Mushrooms per Day (pounds) 1 12 2 30 3 45 4 50 5...
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Labor Quantity Price MPI Wage Per Unit Marginal Rate Product of Labor 0 $100 $50 5...
Labor Quantity Price MPI Wage Per Unit Marginal Rate Product of Labor 0 $100 $50 5 $105 $50 12 $10 7 $50 30 $10 18 $50 43 $10 13 $50 52 $109 $50 60 $108 $50 64 $10 4 $50 OU UN-O TFC TVC TC M C AVC ATC Marginal Total Total Total Total Marginal Average Average Revenue Revenu Fixed Variable Cost Cost Variable Total Cost Cost Cost Cost 2000 200 - - - $100 200 50 250 10 10...
MONDAY TUESDAYWEDNESDAYTHURSDAY FRIDAY SATURDAYSUNDAY 109 100 104 106 112 110 112 110 110 113 110 108 109 110 110 1...
MONDAY TUESDAYWEDNESDAYTHURSDAY FRIDAY SATURDAYSUNDAY 109 100 104 106 112 110 112 110 110 113 110 108 109 110 110 105 109 112 108 11. A study is conducted to investigate the weights of the super-size protein bars produced by a local manufacturer Each wrapper indicates a weight of 110 grams, but complaints have recently been made that the bars are being produced underweight. A sample is taken 4 times per day over the course of a week (n=4, m-7). (2...
Problem 8-8 Plan production for a four-month period: February through May. For February and March, you...
Problem 8-8 Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply,...
Cost curves (dollars) $200 150 100 50 F 1 3 4 0 2 5 6 7...
Cost curves (dollars) $200 150 100 50 F 1 3 4 0 2 5 6 7 8 9 10 11 Quantity of output (per day) At seven units of output, average fixed cost is approximately. approximately and average variable cost is O $40: $100 O $100; $100 O $140: $140 O $10: $135
1.67 pts Bob's Taco Shack has hired a worker to stand on the corner and wave a sign advertising his business. It costs him $15 per hour to have this worker stand on the corner. Each customer spends an average of $3 when they visit his shack. He has found his total customer count increases with each hour he hires the sign waving worker, as indicated in the table: HOURS TOTAL CUSTOMERS PER DAY 0 50 70 N 88 3...
The information in the table identifies a market basket purchased by the average urban consumer, and the prices of the goods in two different years. The base year is 2015. Item Market Basket Price 2015 Price 2016 Movie tickets 4 $10 $13 Bags of 2 $5 $8 popcorn Drinks of soda 4 $4 $6 Calculate the consumer price index for 2016, Enter a number rounded to two decimal places. Next Previous A wx] MacBook 80 DOO * & 7 %...
100 90 1 2. BO 70 60 COST 50 40 30 20 10 D MR 25 35 45 50 1 60 55 OUTPUT Curve 1 should be labeled Curve 2 should be labeled Firms maximize profit where The profit maximizing price for the firm is while the profit maximizing output for the firm is (approximations are fine) Question 27 2 pts Why should a firm never hire a worker when negative marginal returns exist? Hiring an additional worker will increase...
Thinking at the Margin As a given retail establishment hires more workers at a cost of $275 per worker they are able to serve increasing amounts of customers based on the following table. You may assume each customer spends on average $5 at this retail establishment otal Workers Customers Benefit (5) Benefit(S) Total Total Marginal Total Marginal Net Benefin (S) Cost (S) 100 1 80 250 310 360 This retail establishment is trying to decide how many workers to hire....
Labor Total product (workers) (wands per day) 0 0 1 10 25 3 45 4 60 5 70 The table above shows Randy's Wands' short-run production function. Randy hires workers at a wage rate of $120 a day and his total fixed cost is $400/day. a) What is the marginal product of the 3rd worker? b) What is Randy's average fixed cost if 25 wands are produced? What is Randy's average variable cost if 60 wands are produced? c) d)...
Labor Quantity Price MPI Wage Per Unit Marginal Rate Product of Labor 0 $100 $50 5 $105 $50 12 $10 7 $50 30 $10 18 $50 43 $10 13 $50 52 $109 $50 60 $108 $50 64 $10 4 $50 OU UN-O TFC TVC TC M C AVC ATC Marginal Total Total Total Total Marginal Average Average Revenue Revenu Fixed Variable Cost Cost Variable Total Cost Cost Cost Cost 2000 200 - - - $100 200 50 250 10 10...
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Problem 8-8 Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply,...
Cost curves (dollars) $200 150 100 50 F 1 3 4 0 2 5 6 7 8 9 10 11 Quantity of output (per day) At seven units of output, average fixed cost is approximately. approximately and average variable cost is O $40: $100 O $100; $100 O $140: $140 O $10: $135
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