Question

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information, what is the total cost of production when the firm hires 7 workers?

$66, $76, $906, $946
0 0
Add a comment Improve this question Transcribed image text
Answer #1
66
answered by: yhg
Add a comment
Know the answer?
Add Answer to:
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Suppose that for a particular firm the only variable input into the production process is labor...

    Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 2 workers, the total cost of production is $2,000. When the firm hires a total of3 workers, the total cost of production is $2,500. In addition, assume that the variable cost per unit of labor is the same regardless of the number of units of labor...

  • In the short run, we assume that capital is a fixed input and labor is a variable input, so the f...

    In the short run, we assume that capital is a fixed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's production function is q fixed number of units of capital. fL, K), where q is output, L is workers, and K is the A specific equation for the production function is given by: Or , when K=29, q - (Bx29xL) 512- The...

  • Suppose that a firm's only variable input is labor. The firm increases the number of employees...

    Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by three units and total costs to increase from $3,300 per week to $3,600 per week. What is the marginal product of the fifth worker units. (Your answer should be a whole number.)

  • Question 5 1 pts Case 1. Suppose a coffee shop's only variable input is labor. When...

    Question 5 1 pts Case 1. Suppose a coffee shop's only variable input is labor. When 20 workers are hired, the average product of labor is 250 (cups/worker), and the marginal product of the 20th worker is 200 (cups/worker). The price of labor is $200 per worker. The cost of all fixed inputs is $1000. Refer to Case 1. When 20 workers are hired, the marginal cost of coffee is $_per cup. O2 O 0.5 O 0.8 01 Question 6...

  • Question 31 1 pts A firm produces automobiles using labor as its variable input. The output...

    Question 31 1 pts A firm produces automobiles using labor as its variable input. The output per labor hour is one automobile and each additional labor hour could produce two additional automobiles. Suppose that the firm increases its labor hours. Is this a sound economic decision? No, since average product of labor (APL) would decrease. Yes, since average product of labor (APL) is at a maximum. No, since marginal cost (MC) is at a minimum. Yes, since average variable cost...

  • 29. A firm produces in a perfectly competitive market and hires labor in a perfectly competitive...

    29. A firm produces in a perfectly competitive market and hires labor in a perfectly competitive labor market. The firm hires four workers, the marginal product of the fourth worker is 4, and the wage rate is $40. The firm produces 100 units of the product, which sell for a price of $10. This firm is a. maximizing profit when it hires four workers. b. not maximizing profit and should hire more workers to increase profit. c. not maximizing profit...

  • he following graph shows the marginal and average product curves for labor, the firm's only variable input. The mon...

    he following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for laboris $2,000. Fixed cost is $120,00 pedictofon When the firm uses 100 units of labor, what is marginal cost at this level of output? O $25 O 533 33 $90 O $180 O $2000 References 1-ntre 2 exposure Starter Pack

  • 4. Suppose a firm uses only one input (L) to produce output y, with the production...

    4. Suppose a firm uses only one input (L) to produce output y, with the production function y L Suppose the firm sells its output in a competitive market at price p, and buys labor in a competitive market at price w. a. Write an expression for the profits of the firm as a function of w, p, and L. b. What is the marginal cost of hiring an additional unit of labor? Graph the marginal cost of labor curve...

  • In the short-run, we assume that capital is a fixed input and labor is a variable...

    In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's production function is q = f(L, K), where q is output, L is workers, and K is the fixed number of units of capital. Production Output or Marginal Product Product Labor Average Product Given a specific equation for production: 0 249 9 =...

  • 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT