Boone's is a firm that produces hay bales. There are many other firms that produce hay...
|M4 Questions of the Week 1. Hayfever Farms is an 80-acre hay farm in Colorado. Due to the legalization of marijuana in the state, the owners of the farm are considering changing the farm's name to Blissful Acres and growing marijuana instead of hay. Use the information presented in the table to answer three questions. Number of acres 10 20 30 40 50 60 70 80 MC$ 320 200 540 730 1,200 3,200 5,600 6,700 MR (hay) 730 730 730...
need help with all of them Question 6 (1 point) In perfect competition, marginal revenue is the change in revenue from selling an additional unit of output the revenue in excess of what can be earned in the next-best alternative the last dollar needed to make zero economic profit the extra revenue generated by a $1 change in price the last dollar needed to make maximum profit Question 7 (1 point) In which of the following situations should a profit-maximizing...
The following table represents a certain production function of what a certain facility can produce in one day. Assume the firm has a fixed amount of physical capital that they rent for $500 a day. We will use this example to review CH. 7. [probably easiest to copy and paste the table and question parts into the submission box and then add your response. Make your text a different color for ease of viewing] L Q MPL FC VC TC AFC...
2. Consider an economy with many identical firms. Each firm produces according to a Cobb- Douglas production function: y = AK α N 1−α where y is output, K is the amount of capital, N is the amount of labor and 0<α <1 is a parameter. (a) What is the marginal product of labor (MPN)? (Take a partial derivative with respect to N ) (b) What is the marginal product of labor when A = K = 1 , N...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC = q +35 MR = 560 + 22q-q? Where q is the quantity produced and the firm's break-even is 5 units per week You are Required to 1. determine the total cost and the total revenue function in terms of q. (6 marks) II. estimate the output at which profit is maximize (6 marks) III. calculate...
A firm uses capital and labor to produce output according to the production q = 4VLK (a) Find the marginal product of labor (MPL) and marginal product of capital (MPK). (b) If the wage w=$1/labor-hr. and the rental rate of capital r-$4/machine-hr., what is the least expensive way to produce 16 units of output? (c) What is the minimum cost of producing 16 units? (d) Show that for any level of output, q, the minimum cost of producing q is...
QUESTION 49 A firm is currently producing where MC-55 and MR-$10. This firm is profit-maximizing under-producing over-producing no conclusion can be made QUESTION 50 2 poin A firm should increase its production when marginal revenue rises and marginal cost stays the same marginal cost rises and marginal revenue stays the same both marginal cost and marginal revenue are falling both marginal cost and marginal revenue are rising Question Completion Status: If the firm produces 120 units of output with 12...
2. The table below shows the total production of a firm as the quantity of labour employed increases. The quantities of all other resources employed are constant. Unit of labour Total product Marginal product Average product of labour of labour 165 200 225 240 245 a) Compute the marginal and average products. (2 marks) b) Draw the marginal and average product curves on a graph paper. (4 marks) c) Assume that the labour is the only variable input used and...
2. Suppose the firm has the one variable production function Q=L?. Assume that the wage rate is w= 20 and that the firm has fixed costs of 10. Finally, assume that the firm is a price taker and the market price is 2. a) Show that this production function exhibits increasing returns to scale. Show that the marginal product of labor is increasing. Illustrate the production function. Is it convex, concave or neither? b) Find the variable and total cost...
1. In the short run production function of a firm, MC, ATC, and AVC curves are usually U Shaped because of: a. diminishing marginal product of variable input as output produced rises. b. increasing marginal product c. the fact that increasing marginal product follows decreasing marginal product d. the fact that decreasing marginal product follows increasing marginal product. 2. Perfectly Competitive market is considered to be efficient in the LR because, among others,: a. MR=MC=P b. MC=P=Minimum ATC c. Produces...