Question
In: Economics
Capital (K) Labor (L) Output (Q) MPL APL MC AVC ATC 10 0 0 10...
|
Capital (K) |
Labor (L) |
Output (Q) |
MPL |
APL |
MC |
AVC |
ATC |
|||
|
10 |
0 |
0 |
|
|||||||
|
10 |
1 |
10 |
10 |
10 |
||||||
|
10 |
2 |
24 |
14 |
12 |
||||||
|
10 |
3 |
39 |
15 |
13 |
||||||
|
10 |
4 |
52 |
13 |
13 |
||||||
|
10 |
5 |
61 |
9 |
12.2 |
||||||
|
10 |
6 |
66 |
5 |
11 |
||||||
|
10 |
7 |
66 |
0 |
9.4 |
||||||
|
10 |
8 |
64 |
-2 |
8 |
Assume that each unit of labor costs $10 (the wage for a breakfast shift) and that fixed cost is $5. Also assume that there are no ingredient costs or electricity costs (just to make it easier).
Derive the cost curves: MC AVC and ATC. Then sketch them (its best to draw and then submit a pdf or jpeg)
Hint: You don’t have enough detail to do MC for each unit of output, so you need to find it for the increments shown in the table (for example MC for the first 10 breakfasts is $10 or $1 per breakfast in that range so put $1 as MC per unit there) So you are finding MC per unit for units in each range based on the info given.
Fill in columns for MC AVC and ATC and graph those cost curves.
Solutions
Rahul Sunny answered 8 months agoRelated Solutions
Labor (L) Total Product (Q) Marginal Product MPL Average Product APL 0 0 1 5 2...
Labor (L)
Total Product (Q)
Marginal Product MPL
Average Product APL
0
0
1
5
2
11
3
18
4
23
5
26
3. According to the above table, at what usage of labor does
diminishing marginal product begin?
A) 1 worker
B) 2 workers
C) 4 workers
D) 5 workers
Need to calculate the MPL for all labor in a third column. Show
your work.
4. According to the above table, what is the marginal product of
the 4th...
Suppose output, Q, is produced by labor, L, and capital, K, according to the following function:...
Suppose output, Q, is produced by labor, L, and capital, K,
according to the following function: Q = K ½ L½.. Suppose the firm
sells each unit of output in a competitive market for a price P =
$100. Suppose the firm hires each unit of labor in a competitive
market for a wage W = $25. Suppose the firm has to make do for now
with a stock of capital K = 49; moreover, suppose each unit of
capital...
production fuction is: y(K,L)=12√ KL K=capital L=labor a)find the equation for the MPL and MPK as...
production fuction is: y(K,L)=12√
KL
K=capital
L=labor
a)find the equation for the MPL and MPK as a fuction of K and
L.
b) . Suppose the number of stoves is fixed in the short run,
while the amount of labor used is variable. Fill in the table
below:
Output K L MPL MPK
12 1
12 4
12 9
12 16
Now suppose is in the long run, where both capital and labor
are variable factors of production.
i. Does...
Output TC MC ATC AFC TVC AVC TFC 0 1 2 3 4 5 6 7...
Output
TC
MC
ATC
AFC
TVC
AVC
TFC
0
1
2
3
4
5
6
7
8
AFC for 8 units of output is $4.5
AVC for 4 units of output is $15
TC is increased by $14 when the 5th unit of output
is added
The ATC of 6 units of output is the same as the ATC of 5 units
of output
TC for 7 units of output is $168
TVC is increased by $64 when the 8th...
Assume the cost data is for a perfectly competitive firm: Q AFC AVC ATC MC 1...
Assume the cost data is for a perfectly competitive
firm:
Q
AFC
AVC
ATC
MC
1
60
45
105
45
2
30
42.5
72.5
40
3
20
40
60
35
4
15
37.5
52.5
30
5
12
37
49
35
6
10
37.5
47.5
40
7
8.57
38.57
47.14
45
8
7.5
40.63
48.13
55
9
6.67
43.33
50
65
10
6
46.5
52.5
75
Complete the following table:
P = 56
P = 40
P = 32
Will this...
Assume the cost data is for a perfectly competitive firm: Q AFC AVC ATC MC 1...
Assume the cost data is for a perfectly competitive
firm:
Q
AFC
AVC
ATC
MC
1
60
45
105
45
2
30
42.5
72.5
40
3
20
40
60
35
4
15
37.5
52.5
30
5
12
37
49
35
6
10
37.5
47.5
40
7
8.57
38.57
47.14
45
8
7.5
40.63
48.13
55
9
6.67
43.33
50
65
10
6
46.5
52.5
75
Complete the following table:
P = 56
P = 40
P = 32
Will this...
Quantity TC Price of TR ATC AVC MC MR MR-MC Profit change in good profit 0...
Quantity
TC
Price of
TR
ATC
AVC
MC
MR
MR-MC
Profit
change in
good
profit
0
10
5
0
1
15
5
5
15
5
5
5
2
18
5
10
9
4
3
5
3
20
5
15
6.67
3.33
2
5
4
21
5
20
5.25
2.75
1
5
5
23
5
25
4.6
2.6
2
5
6
26
5
30
4.33
2.67
3
5
7
30
5
35
4.29
2.86
4
5
8
35
5
40
4.38...
Summarize in one sentence the relationship between AVC and MC and between ATC and MC.
Summarize in one sentence the relationship between AVC and MC and
between ATC and MC.
A firm produces output using capital (K) and labor (L). Capital and labor are perfect complements...
A firm produces output using capital (K) and labor (L). Capital
and labor are perfect complements and 1 unit of capital is used
with 2 units of labor to produce 1 unit of output. Draw an example
of an isoquant. If wages and rent are $2 and $3, respectively, what
is the Average Total Cost?
A firm has a production function given by Q=4KL where K, L and Q
denote capital, labor, and output, respectively. The firm wants to
produce...
5. The marginal product of labor (MPL) intersect with the average product of labor (APL) at...
5. The marginal product of labor (MPL) intersect with
the average product of labor (APL) at the point where
APL reaches its maximum. Show mathematically that
MPL = APL at the point of intersection.
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