QUESTION 21 If the firm's marginal cost is $10 and in the short run capital is fixed, with wages for workers at $40 per hour, what must the worker's marginal product per hour be? $10 $40 4 400
Answer
Marginal cost =wage /marginal product
marginal product =wage/marginal cost
marginal product =40/10=4 units
the marginal product is 4 units
option 3
QUESTION 21 If the firm's marginal cost is $10 and in the short run capital is fixed, with wages for workers at $40 per...
please answer all 3
Question Completion Status: If the firm's marginal cost is $10 and in the short run capital is fixed, with wages for workers at $40 per hour what must the worker's marginal product per hour bel 510 540 400 If the Marginal Product of capital is 6 and the Marginal Product of laboris 3; the prices of capital and labor are 510 and 12 respectively. What should the manager do Increase output Substitute in more labor for...
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A firm has a short run cost function of C=10+2q+q2 with capital fixed at K. What is the firm's average product of labor if it produces 6 units and labor wage is $8 per unit. How many units of labor must be used in the short run if it is currently producing 6 units.
A company raises its worker's wages. We know the short-run average total cost curve and long-run average cost curve will shift upwards when the company hires workers. What happens to the company’s marginal costs?
4. Suppose a firm is planning for the short-run. The firm's fixed cost is 100, and its variable cost per unit of output is 5. a. Fill in the following table. Fixed Total Cost, Avg. Var. Variable Cost, VC Output, Cost, Marginal Cost MC Avg. Cost, Avg. Fixed Cost, AFC Cost, FC AVC АС 10 b. Does this firm's short-run cost structure display economies of scale? Why or why not?
4. Suppose a firm is planning for the short-run. The firm's fixed cost is 100, and its variable cost per unit of output is 5. a. Fill in the following table. Output, Fixed Cost, FC Variable Cost, VC Total Cost, с Marginal Cost, MC Avg. Fixed Cost, AFC Avg. Var. Cost, AVC Avg. Cost, AC 9 0 1 2 3 4 5 6 7 8 9 10 b. Does this firm's short-run cost structure display economies of scale? Why or...
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A firm uses labor (L) and capital (K) as inputs, and has a short run cost function C=15+ 10q+ q2. Capital is fixed at K̅ a. Give the formula for the firm's marginal cost function. Any method of deriving the marginal cost function is acceptable. (Hint: When calculating MC, you can assume that increases by a very, very small amount, so that q2 = q1 + ε ≈ q and q1 + q2 ≈ 2q.) b. Give the formula for the firm's...
In the short run, a perfectly competitive firm produces output using capital services (a fixed input) and labour services (a variable input). At its profit-maximizing level of output, the marginal product of labour is equal to the average product of labour. a. What is the relationship between this firm's average variable cost and its marginal cost? O Average variable cost is higher than marginal cost O Average variable cost equals marginal cost O Average variable cost is less than marginal...