Show that there is a labour theory of value when land is “free” in the sense of “free” land above. That is, show that the total value of output equals the value contributed by labour. (Hint: A unit of labour can be said to contribute the value of its marginal product to output value.)
Show that there is a labour theory of value when land is “free” in the sense...
The marginal product of labour (MPL) at a particular labour input level (L) corresponds to the __ on the total product of labour (TPL) curve. O area under the curve between 0 and a particular level of L area above the curve between 0 and a particular level of L slope of the ray from the (0,0) origin to the particular level of L slope of a tangent line at the particular level of L The average product of labour...
Please solve the above sum (c) ()The average product of labour when three workers farm an acre of land is 150 bushels of wheat and the marginal product. when fourth worker is employed. is 75 bushels. What is the total output with four workers? (i) What is the minimum efficient scale of production in long-run average cost? (i) Determine whether the following production functions exhibit increasing, decreasing or constant returns to scale: Q = 300K + 25L 2+2+2 (c) ()The...
2. Production theory and cost theory a) You are an employer seeking to fill a vacant position on an assembly line. Are you more concerned with the average product of labour or the marginal product of labour for the last person hired? Explain. (4p) i) ii) If you observe that your average product is just beginning to decline, should you hire any more workers? What does this situation imply about the marginal product of your last worker hired? (4p) b)...
1. Prunella raises peaches. L is the number of units of labour she uses and T is the number of units of land she uses, her output (bushels of peaches), denoted as Q, is given by Q = √ LT . (a) Consider the short-run decision, in which she has a fixed amount of land (T = 9). Does this production function exhibit the diminishing marginal return on the labour input? Explain your answer. (b) If she uses 4 units...
In class A7 - Productivity and Costs (Chapter 11) 1. Calculate the Average Product and Marginal Product of the variable input Inputs No. of Average Marginal boats Product Product Labour of Draw the AP and MP curves of the variable input. Remember AP and MP are measured in units of output! Identify the max point of AP of Labour and MP of Labour (the points of diminishing returns for both curves). The diagram need not be to scale. 2. The...
The Greasy Wrench shop specialising in auto repairs rents a building at the corner of 77th and Moonawalker . In the short run ,it can vary its output (the number of cars fixed) only by varying the number of mechanics it employs. Each greasy wrench employee is paid a fixed wages Over the years , Wu Wei , the owner of Greasy Wrench ,has tried hiring different number of workers . The data about the average productivity of each worker...
10.Given the table, what is the value of average fixed cost at the quantity of output = 120 units? A) $100 B) $0.83 C) $1.20 D) $1.32 E) None of the above Answer and Explain A perfectly competitive firm has two inputs, capital and labour. Capital is fixed in the short run and costs $100 per day. The firm's short run Total Product information as illustrated in the table below. The price of labour is $10 per hour. The market...
please help me with the graph and how many workers. thank youu 1. Graphing demand for labour and computing the optimal quantity A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage (marginal resource cost) of $270 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labour (MRP) at each quantity of workers. Labour (Number of...
· Question 1 The unit contribution margin (in the break-even analysis) refers to: The price of the product less its average variable cost The price of the product less its average fixed cost The price of the product less its marginal cost The price of the product less its average total cost · Question 2 When the firm produces at the loss-minimizing output, marginal profit is: Zero Positive Negative Can be positive, negative or zero · Question 3 When marginal...
12. When the total cost is minimized for producing output Q. at the input combination selected, the slope of the isocost is equal to the slope of the isoquant the Marginal Rate of Technical Substitution (MRTSLK) equals the input ratio of Land K. the productivity ratio of labor and capital equals their total-cost ratio. all of the above are correct