consider the following short-run production function for a firm: show work
Labor 1 2 3 4 5 6 7 8
Total product 5 12 ? 23 27 ? 32 33
Average product 5 ? 6 5.75 5.4 5 ? 4.12
Marginal product 5 7 6 ? 4 3 ? 1
The missing total product figures are
Answer
Option d
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total product of n input= total product of n-1 inputs+ marginal product of n th input
also, total product of n inputs =average product of n inputs * n
for Labor =3
total product is
from the second formula.
TP(3)=3*6=18 units
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from the first formula
TP(3)=12+6=18 units
======================
TP(6)=5*6=30
TP(6)=27+3=30
consider the following short-run production function for a firm: show work &n...
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Suppose the U.S. bicycle market is perfectly competitive. The graph below shows the short run cost curves of Ted's bicycle store. Suppose the market price is $13. Should Ted shut down his store in the short run? Briefly explain. MC ATC AVC 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 $/Q AFC 1 0...
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Suppose the U.S. bicycle market is perfectly competitive. The
graph below shows the short run cost curves of Ted’s bicycle store.
Suppose the market price is $29. Is Ted making an economic profit
in the short run? Are the profits sustainable in the long run
assuming this is a constant cost industry? Briefly explain.
MC ATC AVC O/$ 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13...
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