Assume labor and machines are used in the production of an output. The marginal product of the last worker h...
Assume labor and machines are used in the production of an output. The marginal product of the last worker hired was 175 units a day and the marginal product of the last machine employed was 850 units a day. The wage to hire a worker for a day is $100 while the cost to employ the machine for a day was $400. Assuming perfect competition what would you recommend the firm do to become more efficient?
Homework Answers
Add Answer to:
Assume labor and machines are used in the production of an output. The marginal product of the last worker h...
Assume labor and machines are used in the production of an output. The marginal product of...
Assume labor and machines are used in the production of an output. The marginal product of the last worker hired was 175 units a day and the marginal product of the last machine employed was 850 units a day. The wage to hire a worker for a day is $100 while the cost to employ the machine for a day was $400. Assuming perfect competition what would you recommend the firm do to become more efficient?
Table 2 Units of Labor Total Product Imperfect Competition Marginal Marginal Product Total Revenue Product Price...
Table 2 Units of Labor Total Product Imperfect Competition Marginal Marginal Product Total Revenue Product Price Revenue Product IIIIIII ||| 3. How many workers will the firm hire if the market wage rate is $27.95? 4. How many workers will the firm hire if the market wage rate is $19.95? 5. Compare the hiring practices of the firm under Pure Competition and Imperfect Competition. In which situation is the demand for labor more elastic?
Name: 1. Consider a firm that hires workers (L) and produces output (Q). a. If the...
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...
1)The marginal product of labor is equal to the A. total product divided by the total...
1)The marginal product of labor is equal to the A. total product divided by the total number of workers hired. B. increase in the total product that results from hiring one more worker. C. slope of the marginal product of labor curve. D. None of the above answers are correct. 2) The marginal product of labor is the increase in total product from a A. one dollar increase in the wage rate, while holding the price of capital constant. B....
1a) Consider an economy where output is produced using just labor as input. Output is sold...
1a) Consider an economy where output is produced using just labor as input. Output is sold at $10 per unit and the marginal product of labor for each worker hired is expressed as MPL=10-2L. If each worker is paid $40, what would be the total profit of the profit-maximizing entrepreneur? a. $40 b. $60 c. $0 1b) Consider an economy where output is produced using just labor as input. Output is sold at $10 per unit and the marginal product...
A firm produces its output using only capital and labor.Labor costs $100 per worker per day...
A firm produces its output using only capital and labor.Labor costs $100 per worker per day and capital costs $200 per unit per day. If the marginal product of the last worker employed is 500 and the marginal product of the last unit of capital is 1,000, is the firm employing the cost-minimizing combination of inputs? Explain.
1. A firm uses labor (L) and machine (K) to assemble garden benches. The firm has...
1. A firm uses labor (L) and machine (K) to assemble garden benches. The firm has the pro- duction function Q = F(L,K) = 207LVK, where L is the number of full-time workers the firm hires per day and K is the number of machines the firm uses per day. Both L and K can be non-integers (for example, a worker can work for half a day). Each worker costs $100 a day and each machine costs $200 a day....
a) Why do we assume diminishing marginal product of labor (MPL)? Does the following data on...
a) Why do we assume diminishing marginal product of labor (MPL)? Does the following data on a firm's production support this assumption? Assume the wage is AED 100 and the price of output is AED 10. How many workers will the firm hire? Show graphically. b) What is the marginal cost (MC) of output? Are MPL and MC related? How many units of output will the firm produce? Calculate or show graphically, Labor Total Product 25 00
Question: A firm currently employs 40 production workers and 5 supervisors. The marginal product of the...
Question: A firm currently employs 40 production workers and 5 supervisors. The marginal product of the last production worker employed is 60 units of output per hour and production workers are paid $8 per hour. The marginal product of the last supervisor employed is 120 units of output per hour and supervisors are paid $20 per hour. Every employee works 40 hours per week. a) What is the firm's total labor cost per week? b) Assume that the firm's isoquants...
Suppose a firm has the following production function: Q = 2K L. The marginal product of...
Suppose a firm has the following production function: Q = 2K L. The marginal product of capital is 2L, and the marginal product of labor is 2K. Assume that capital rents for $100 per unit per day, that labor can be hired for $200 per unit per day, and that the firm is minimizing costs. a. The firm will hire units of labor and - units of capital. b. What is the total cost of producing 60 units of output?...
Table 2 Units of Labor Total Product Imperfect Competition Marginal Marginal Product Total Revenue Product Price Revenue Product IIIIIII ||| 3. How many workers will the firm hire if the market wage rate is $27.95? 4. How many workers will the firm hire if the market wage rate is $19.95? 5. Compare the hiring practices of the firm under Pure Competition and Imperfect Competition. In which situation is the demand for labor more elastic?
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...
1. A firm uses labor (L) and machine (K) to assemble garden benches. The firm has the pro- duction function Q = F(L,K) = 207LVK, where L is the number of full-time workers the firm hires per day and K is the number of machines the firm uses per day. Both L and K can be non-integers (for example, a worker can work for half a day). Each worker costs $100 a day and each machine costs $200 a day....
a) Why do we assume diminishing marginal product of labor (MPL)? Does the following data on a firm's production support this assumption? Assume the wage is AED 100 and the price of output is AED 10. How many workers will the firm hire? Show graphically. b) What is the marginal cost (MC) of output? Are MPL and MC related? How many units of output will the firm produce? Calculate or show graphically, Labor Total Product 25 00
Suppose a firm has the following production function: Q = 2K L. The marginal product of capital is 2L, and the marginal product of labor is 2K. Assume that capital rents for $100 per unit per day, that labor can be hired for $200 per unit per day, and that the firm is minimizing costs. a. The firm will hire units of labor and - units of capital. b. What is the total cost of producing 60 units of output?...
Most questions answered within 3 hours.
-
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 22 minutes ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 45 minutes ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 2 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 2 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 2 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 3 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 3 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 4 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 5 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 5 hours ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 5 hours ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 5 hours ago