Homework Answers
The law of diminishing returns states that the output produced by each additional worker hired falls as more workers are hired. In other words, the marginal product falls as more units of labor are employed.
| Workers | Output | Marginal Product |
| 0 | 0 | - |
| 1 | 40 | 40 - 0 = 40 |
| 2 | 60 | 60 - 40 = 20 |
| 3 | 70 | 70 - 60 = 10 |
| 4 | 75 | 75 - 70 = 5 |
| 5 | 77 | 77 - 75 = 2 |
So, the marginal product falls as more units of labor are employed. Therefore, the firm is experiencing diminishing returns.
The price of a unit is $100.
The marginal revenue product can be calculated by multiplying the marginal product by the price of the product. So, the marginal revenue product of the third worker is (10)(100) = $1,000.
Suppose a firm produces hardware that plays video games using workers according to the table below....
Suppose a firm produces hardware that plays video games using workers according to the table below. Suppose also that its output sells for $250 per unit. Workers Output 56 84 98 105 107 Is the firm experiencing the effects predicted by the law of diminishing returns? The firm experiencing diminishing returns. What is the marginal revenue product of the fourth worker? The fourth worker's marginal revenue product is $ . (Enter your response as an integer.)
The first second, and third workers employed by a firm add 24, 18, and 9 units...
The first second, and third workers employed by a firm add 24, 18, and 9 units to total product, respectively. On the basis of this information, we can say that: the total product of the three workers is 9 the average product of the three workers is 3 the law of diminishing marginal returns is not evident in this example the marginal product of the third worker is 9 the law of diminishing marginal returns becomes evident with the addition...
The marginal product of the first is 4 the 2: 6 the3:6 % Concept: Marginal Product...
The marginal product of the first is 4
the 2: 6
the3:6
% Concept: Marginal Product of Labor 1 Question Help Suppose Charles owns a lawn mowing company. Assume that without workers, noyards are mowed. When he is one worker, he is able to mow 4 yards per day with two workers, he can mow 10 yards per day, and with three workers, he can mow 16 yards per day The marginal product of the first worker is 4 yards...
The first second, and third workers employed by a firm add 25, 18, and 10 units...
The first second, and third workers employed by a firm add 25, 18, and 10 units to total product, respectively. On the basis of this information, we can say that: the total product of the three workers is 9 the average product of the three workers is 3 the law of diminishing marginal returns is not evident in this example the marginal product of the third worker is 8 the law of diminishing marginal returns starts with the addition of...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using...
IMUNIVE LI UYUI Score: 0 of 1 pt < 6 of 10 (5 complete) HW Score:...
IMUNIVE LI UYUI Score: 0 of 1 pt < 6 of 10 (5 complete) HW Score: 40%, 4 of Concept Question 3.15 Question Help The following table shows the daily relationship between the number of workers and output (Q) for a small factory in the short run, with capital held constant. Each worker costs $100 per day, and the firm has foxed costs of $75 per day. Calculate total cost (TC), marginal cost (MC), and average total cost (ATC). (Round...
Table 13-1 Number of Workers Total Output Marginal Product 140 6. Refer to Table 13-1. What is total output when 2...
Table 13-1 Number of Workers Total Output Marginal Product 140 6. Refer to Table 13-1. What is total output when 2 workers are hired? a. 15 b. 45 c. 75 d. 120 et de 7. Refer to Figure 13-2. If the figure represented production at a cookie factory, the factory would be experiencing a. diminishing marginal product of workers b. diminishing marginal cost of cookie production c. decreasing cost of cookie production d. decreasing output of cookies. Wose Jan started...
Question 6 S L 1 pts Table 13-5 Number of Output Workers 0 0 1 1 ,000 2 2 ,000 S32,700 4 3 ,200 5 3 ,500 6 3 ,600...
Question 6 S L 1 pts Table 13-5 Number of Output Workers 0 0 1 1 ,000 2 2 ,000 S32,700 4 3 ,200 5 3 ,500 6 3 ,600 Refer to Table 13-5. Assume that fixed costs are $500, and variable costs are $100 per worker. For this firm, what are the shapes of the production function and the total cost curve? The production function is increasing at a decreasing rate, whereas the total cost function is increasing at...
Ron’s Woodturning Company makes high quality wooden bowls from exotic hardwoods from around the world. The...
Ron’s Woodturning Company makes high quality wooden bowls from
exotic hardwoods from around the world. The firm may sell all it
produces to retail outlets at $10/bowl. Ron can hire all of the
workers he needs at a market wage of $90/day per worker. Ron’s
short-run production function is shown below:
a. As Ron hires the first, the second and the third worker, what
happens to his output? What happens to his marginal product?
Explain why this could be occurring....
core: 0 of 6 pts 9 of 12 (9 complete) Hw Score: 50%, 190138 p Chapter Problem 2 Oaston Help Suppose the two countries we considered in the numerical exartple in the t automobiles. Find the number...
core: 0 of 6 pts 9 of 12 (9 complete) Hw Score: 50%, 190138 p Chapter Problem 2 Oaston Help Suppose the two countries we considered in the numerical exartple in the t automobiles. Find the number of firms, the output per firm, and the price per automobile in the new integrated text were to integrate their automobile market with a third country with an annual market for 3,750,000 You are given the following information The total sales (S) in...
Suppose a firm produces hardware that plays video games using workers according to the table below. Suppose also that its output sells for $250 per unit. Workers Output 56 84 98 105 107 Is the firm experiencing the effects predicted by the law of diminishing returns? The firm experiencing diminishing returns. What is the marginal revenue product of the fourth worker? The fourth worker's marginal revenue product is $ . (Enter your response as an integer.)
The first second, and third workers employed by a firm add 24, 18, and 9 units to total product, respectively. On the basis of this information, we can say that: the total product of the three workers is 9 the average product of the three workers is 3 the law of diminishing marginal returns is not evident in this example the marginal product of the third worker is 9 the law of diminishing marginal returns becomes evident with the addition...
The marginal product of the first is 4
the 2: 6
the3:6
% Concept: Marginal Product of Labor 1 Question Help Suppose Charles owns a lawn mowing company. Assume that without workers, noyards are mowed. When he is one worker, he is able to mow 4 yards per day with two workers, he can mow 10 yards per day, and with three workers, he can mow 16 yards per day The marginal product of the first worker is 4 yards...
The first second, and third workers employed by a firm add 25, 18, and 10 units to total product, respectively. On the basis of this information, we can say that: the total product of the three workers is 9 the average product of the three workers is 3 the law of diminishing marginal returns is not evident in this example the marginal product of the third worker is 8 the law of diminishing marginal returns starts with the addition of...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using...
IMUNIVE LI UYUI Score: 0 of 1 pt < 6 of 10 (5 complete) HW Score: 40%, 4 of Concept Question 3.15 Question Help The following table shows the daily relationship between the number of workers and output (Q) for a small factory in the short run, with capital held constant. Each worker costs $100 per day, and the firm has foxed costs of $75 per day. Calculate total cost (TC), marginal cost (MC), and average total cost (ATC). (Round...
Table 13-1 Number of Workers Total Output Marginal Product 140 6. Refer to Table 13-1. What is total output when 2 workers are hired? a. 15 b. 45 c. 75 d. 120 et de 7. Refer to Figure 13-2. If the figure represented production at a cookie factory, the factory would be experiencing a. diminishing marginal product of workers b. diminishing marginal cost of cookie production c. decreasing cost of cookie production d. decreasing output of cookies. Wose Jan started...
Question 6 S L 1 pts Table 13-5 Number of Output Workers 0 0 1 1 ,000 2 2 ,000 S32,700 4 3 ,200 5 3 ,500 6 3 ,600 Refer to Table 13-5. Assume that fixed costs are $500, and variable costs are $100 per worker. For this firm, what are the shapes of the production function and the total cost curve? The production function is increasing at a decreasing rate, whereas the total cost function is increasing at...
Ron’s Woodturning Company makes high quality wooden bowls from
exotic hardwoods from around the world. The firm may sell all it
produces to retail outlets at $10/bowl. Ron can hire all of the
workers he needs at a market wage of $90/day per worker. Ron’s
short-run production function is shown below:
a. As Ron hires the first, the second and the third worker, what
happens to his output? What happens to his marginal product?
Explain why this could be occurring....
core: 0 of 6 pts 9 of 12 (9 complete) Hw Score: 50%, 190138 p Chapter Problem 2 Oaston Help Suppose the two countries we considered in the numerical exartple in the t automobiles. Find the number of firms, the output per firm, and the price per automobile in the new integrated text were to integrate their automobile market with a third country with an annual market for 3,750,000 You are given the following information The total sales (S) in...
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