The total ,average and marginal product change as we increase the amount of the variable input ,labor,in the short -run production function

The total ,average and marginal product change as we increase the amount of the variable input ,labor,in the short -run production function ,holding constant the amount of capital and the level of technology ,Consider the relationships among total product ,average product and marginal product

Expert Solution

Rahul Sunny answered 2 years ago

Consider the short-run. As a firm hires more labor, total output ___ and the marginal product...

Consider the short-run. As a firm hires more labor, total output ___ and the marginal product of labor ___. rises; falls falls;rises falls;falls rises;rises Consider the short-run. As the firm hires more labor, average output per laborer ___. remains unchanged falls rises Consider ACME, a monopoly (not a natural monopoly) in the production of rocket skates. The rocket skates industry hired 5,041 workers last year. All else equal, if antitrust authorities were to break up this monopoly (creating a perfectly...

The marginal product of labor is the increase in the amount of output from an additional...

The marginal product of labor is the increase in the amount of output from an additional unit of labor. total amount of output divided by the total units of labor. marginal revenue product minus the wage paid to the worker. None of the above is correct.

which casr increase the marginal product of labor when the production function is a cobb-douglas type...

which casr increase the marginal product of labor when the production function is a cobb-douglas type and require both capital and labor as factors of production? a increase in the capital b, increase in labor c, increase in the capitsl income share d, all above

Consider a short-run production function Q(L), where L is labor input. Think of the case when...

Consider a short-run production function Q(L), where L is labor input. Think of the case when L is large enough so that the marginal product of labor is decreasing. If the average product of labor equals the marginal product of labor, which of the following statement is true? A) the average product of labor is at a maximum. B) the marginal product of labor is at a maximum. C) Both A and B above. D) Neither A nor B above....

Complete the following table calculating marginal product and average product. Labor Inputs Total Product Marginal Product...

Complete the following table calculating marginal product and average product. Labor Inputs Total Product Marginal Product Average Product 0 0 0 0 1 60 2 136 3 204 4 256 5 300 6 336

Explain why the marginal product of labor diminishes in the short run (as more units of...

Explain why the marginal product of labor diminishes in the short run (as more units of labor are added to a fixed amount of a fixed factor like capital or land). Why does diminishing marginal product of labor (the variable factor) lead to increasing marginal cost of the product?

In the short-run, in comparing the change in total variable cost (TVC) and total cost (TC)...

In the short-run, in comparing the change in total variable cost (TVC) and total cost (TC) associated with an additional unit of output, Answers: a) the change in TC is greater than the change in TVC. b) no generalization can be made because of change in TFC. c) both are equal to MC. d) the change in TVC is greater than the change in TC. The short-run marginal product of a variable input has an inverse relationship with the: Answers:...

Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1...

Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1 18 18 2 30 12 3 41 11 4 46 5 If the price of the item is $10.00 per unit and the employees cost $100 each, how many employees should the firm hire to maximize their profit? Two employees Three employees Four employees One employee

Use the following table to answer questions a through d. Labor Input Total Product Marginal Product...

Use the following table to answer questions a through d. Labor Input Total Product Marginal Product Average Product 0 0 --- --- 1 A 70 B 2 135 C D 3 E F 63 4 G 51 H 5 I J 57 6 324 K L a. What is the value of A in the table? b. What is the value of C in the table? c. What is the value of B in the table? d. What is the...

Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average...

Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 0 25 0 1 4 25 25 2 10 25 50 3 13 25 75 4 15 25 100 5 16 25 125 (a) Complete the blank columns. (b) Assume the price of this product equals $10. What’s the profit-maximizing output (q)? Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit...

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