ZuoTi.Pro
Question

0 0 IUW Corn Increase or decrease? #6. (10%) Andover Manufacturing, Inc., produces personal computers. The short-run pro- duc
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Red line is marginal product

Green one is average product

Q = 7.5% - 0.5% Marginal product of labor = 7.5x22 - 340.52² = 15L -1.5L? Average product of laban = 7.56 -0.562

php72k7Vh.png

If the marginal product of labor >average product of labor then each additional unit of labor is more productive than the average of the previous units. Therefore, by adding the last unit, the overall average increases. It means that Average product of labor is increasing. Otherwise the last unit reduces the average. The marginal product in this case reached its peak at L=5. Post that it declined.

0 0
Add a comment
Know the answer?
Add Answer to:
0 0 IUW Corn Increase or decrease? #6. (10%) Andover Manufacturing, Inc., produces personal computers. The short-ru...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • 4. A firm produces computers with two factors of production: labor L and capital K. It's...

    4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is y 10 . Suppose the factor prices are wL = 10 and wk = 100. (a) Graph the isoquants for y equal to 1,2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer,...

  • 4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is ....

    4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is . Suppose the factor prices are wl = 10 and wK = 100. (a) Graph the isoquants for y equal to 1.2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer, how many...

  • Q6: CH 10 (15%) You are planning to estimate a short-run production function for your firm,...

    Q6: CH 10 (15%) You are planning to estimate a short-run production function for your firm, and you have collected the following data on labor usage (L) and output (Q): Labor usage (L) Output (0) a. Please key in the data into MS Excel for regression analysis. Estimate your firm's short-run production function. Do the parameter estimates have the appropriate algebraic signs? Are they statistically significant at the 5 percent level? (Hint: Run the production function as Q = AL...

  • 4. A company produces economic analysis reports using hours of labor (L) and computers (K). The...

    4. A company produces economic analysis reports using hours of labor (L) and computers (K). The production function is ? = 2?√? Initially, in the short run, they have just 1 computer (K = 1). The wage is $20 per hour, and the cost of capital is $10. a. Derive short run total cost and short run average costs curves, with costs as a function of q. Do these costs curves exhibit economies or diseconomies of scale? Explain. (5) b....

  • #7. (30%) Eagle Manufacturing, Inc., produces telecommunication equipments. The pro- duction function of Eagle has been...

    #7. (30%) Eagle Manufacturing, Inc., produces telecommunication equipments. The pro- duction function of Eagle has been estimated as Q=K0.3 0.8 Eagle currently pays $10 per unit of the labor and $20 per unit of the capital input. (a) (5%) Find the algebraic expressions for the marginal product of labor (MPL) and for the marginal product of capital (MPK). (b) (5%) What can you say about returns to scale of the production function? (c) (10%) If Eagle wishes to produce 400...

  • The Austin, Texas plant of Computer Products produces disk units for personal and small business computers....

    The Austin, Texas plant of Computer Products produces disk units for personal and small business computers. Gerald Knox, the plant’s production planning director, is looking over next year’s sales forecasts for these products and will be developing an aggregate capacity plan for the plant. The quarterly sales forecasts for the disk units are as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2,310 1,980 1,980 2,340 Ample machine capacity exists to produce the forecast. Each disk unit takes an...

  • 2. 3. 4. 5. 6. 7. 8. A firm's average fixed cost (AFC) is 10 when...

    2. 3. 4. 5. 6. 7. 8. A firm's average fixed cost (AFC) is 10 when it produces Q=2. Then at Q=5, AFC is ... ОА. 8 Ов. 2 ос. 20 In a perfectly competitive market, the demand for a single firm's product is always O A. perfectly inelastic. O B. exactly as elastic as the market demand curve. O C. inelastic, but not perfectly inelastic. O D. perfectly elastic. As a firm's output increases: O A. average variable cost...

  • QUESTION 22 In a competitive market the price is $8. A typical firm in the market...

    QUESTION 22 In a competitive market the price is $8. A typical firm in the market has ATC - S6, AVC - S5, and MC - $8. How much economic profit is the firm earning in the short run? a. $2 per unit b. Si per unit c. $0 per unit Od.$3 per unit QUESTION 23 Which of the following factors is most likely to shift IBM's total cost and marginal cost curves downward? a. a technological advance resulting in...

  • Points: 10©2006 Capsim Management Simulations, Inc.® Currently Attic is charged $4,382,667 Depreciation on the Income Statement of Andrews.    Andrews is planning for an increase in this depreciati...

    Points: 10©2006 Capsim Management Simulations, Inc.® Currently Attic is charged $4,382,667 Depreciation on the Income Statement of Andrews.    Andrews is planning for an increase in this depreciation. On the financial statements of Andrews will this? Select: 1 Decrease Net Cash from Operations on the Cash Flow Statement. Have no impact on the Net Cash from Operations as depreciation appears in both Cash Flow and the Income Statement. Just impact the Balance Sheet. Increase Net Cash from Operations on the Cash...

  • Activity-Based Costing, Distorted Product Costs Sharp Paper Inc. has three paper mills, one of which is...

    Activity-Based Costing, Distorted Product Costs Sharp Paper Inc. has three paper mills, one of which is located in Memphis, Tennessee. The Memphis mill produces 300 different types of coated and uncoated specialty printing papers. Management was convinced that the value of the large variety of products more than offset the extra costs of the increased complexity. During 20X1, the Memphis mill produced 120,000 tons of coated paper and 80,000 tons of uncoated paper. Of the 200,000 tons produced, 180,000 were...

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