The data below show the relationship between number of workers hired and cost and revenue for...
The below table shows the weekly relationship between output and number of workers for a factory with a fixed size of plant. Number of Workers Output MPL APL 0 0 1 50 2 110 3 300 4 450 5 590 6 600 7 575 8 540 Calculate the marginal product of labor and the average product of labor. At what point (in terms of the number of workers) does diminishing returns set in? At what point (in terms of...
Number of Workers Mushrooms per Day (pounds) 1 12 2 30 3 45 4 50 5 54 6 56 The table above shows the technology of production at the Matsuko's Mushroom Farm for the month of May. a. What is the marginal product of the 4th worker? What is the average product of labor when the farm hires 5 workers? Diminishing marginal returns sets in when the ________ worker is hired.
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....
Name: 1. Consider a firm that hires workers (L) and produces output (Q). a. If the firm charges a price of $1 per unit output (P) and pays a nominal wage of $8 per worker (W), fill in the values in the following table, where MPL is marginal product of labor (units per worker), VMPL is the value of the marginal product of labor ($ per worker), and W/P is the real wage (units per worker). Labor Output MPL Price...
Areandina's Coffee Shop hires workers to make their latté coffees. The market for latté coffee is perfectly competitive, and latté coffees sell for $4.00 each. The labour market is competitive, and the wage rate is $40 per day. Table 1 shows the workers' total product, TP. Workers 1 2 3 4 5 6 Latté Coffees produced per day 7 21 33 43 51 55 Table 1 a) Calculate the marginal product of hiring the fourth worker. b) Calculate the value...
Areandina's Coffee Shop hires workers to make their latté coffees. The market for latté coffee is perfectly competitive, and latté coffees sell for $4.00 each. The labour market is competitive, and the wage rate is $40 per day. Table 1 shows the workers' total product, TP. Workers 1 2 3 4 5 6 Latté Coffees produced per day 7 21 33 43 51 55 Table 1 a) Calculate the marginal product of hiring the fourth worker. I b) Calculate the...
Problem 3 Markets for Factors of Production (20 points) Areandina’s Coffee Shop hires workers to make their latté coffees. The market for latté coffee is perfectly competitive, and latté coffees sell for $4.00 each. The labour market is competitive, and the wage rate is $40 per day. Table 1 shows the workers’ total product, TP. Workers Latté Coffees produced per day 1 7 2 21 3 33 4 43 5 51 6 55 Table 1 Calculate the marginal product of...
Areandina's Coffee Shop hires workers to make their latté coffees. The market for latte coffee is perfectly competitive, and latté coffees sell for $4.00 each. The labour market is competitive, and the wage rate is $40 per day. Table 1 shows the workers' total product, TP. Workers 2 3 Latté Coffees produced per day 7 21 33 43 51 55 4 5 Table 1 a) Calculate the marginal product of hiring the fourth worker. b) Calculate the value of the...
A clothing company hires workers in the competitive market to cut denim to make jeans. The fabric costs $5. The weekly output of the company varies with labour usage and is shown below: Number of worke Jeans (pairs/week) 20 35 48 60 a) What is the marginal productivity of each worker? (1p) b) If the jeans sell for 35 a pair, what is the value of the marginal product of each c) If the competitive market wage is 400 per...
Suppose Debbie notices the following relationship between how many workers she hires to work on her fishing boat, and how much fish her company catches (per day): 2. WorkersQty of FishMargi Fixed Variable Total Cost Averag Marginal Cost Cost ProductC (in 0 120 220 300 360 400 Total Cost Cost pounds (2 points) Use the information in the table to complete the marginal product column. Explain briefly why the marginal productivity might follow this pattern. a. b. 2 points) Suppose...