Question

In: Economics

Fill in the blanks in the table below (show solutions) Trucks Labor Total Product (TP) APL...

Fill in the blanks in the table below (show solutions)

Trucks	Labor	Total Product (TP)	AP_L	MP_L
2	0	0	---	---
2	1	75
2	2		100
2	3			100
2	4	380
2	5			50
2	6		75

Is this a short-run or a long-run production process? Briefly explain.

At what point does diminishing returns set in? Specifically in the context of this problem, why is there DMR?

Is it possible that diminishing marginal returns will set in after the very first unit of labor is employed? Illustrate the total product (TP_L), marginal product (MP_L), and average product (AP_L) in this case. Explain the shape of your graphs.
If the TP_L curve is a straight line through the origin, what do the AP_L and MP_L curves look like? Illustrate. Would the TP_L curve ever have this shape? Why or why not?
Which is more relevant to the firm when making decisions, the average product or the marginal product of a new hire? Explain.

Expert Solution

As truck quantity is constant at 2, so there is only one factor variable ,so this a short run production process.

Marginal product of labour Increases from labour till labour unit 2. From labour unit 3, marginal product of labour start decreasing.so from labour unit 3 diminishing returns set in.

The DMR is because of constant number of truck which leads to over utilization of truck and productivity Decreases. And also lower number of truck make under utilization of labour ,so that also Decreases productivity.and together these two generate DMR.

Yes ,it is possible .If truck fixed quantity is very low for example 0.5.,The DMR will set in after very first unit.

MPL and APL curve will be strictly downward sloping.

And TPL curve will be concave from origin .

IF TPL is a straight line then MPL and APL curve would be straight horizontal line which shows fixed MPL and APL.

Yes,In long run when both factors would be variable then constant returns to scale leads to straight line TPL

Marginal product is more relevant for firm for hiring labour.

The firm decision of hiring labour is based on ,

Marginal revenue product=wage

And marginal revenue product=marginal product* price .

So marginal product is more relevant than average product

Rahul Sunny answered 3 months ago

The table below gives the amount of output/total product (TP) that a firm can produce with...

The table below gives the amount of output/total product (TP) that a firm can produce with various combinations of labor (L) and capital (K): K L TP AP MP 10 4 91 29 10 5 121 10 6 150 10 7 175 10 8 197 10 9 212 10 10 217 10 11 215 a. Is the above production function a short run or long run production function? EXPLAIN why. b. Complete the table by computing the average product (AP)...

Fill in the blanks on the following table

Fill in the blanks on the following tableE&pshareholder basisdistributiondividendreturn of capitalcapital gain20,000300,00080,000120,00010,000170,000220,000100,000170,00020,000080,000<20,000>50,000170,000

Fill in all the remaining blanks in the table below and fill out the appropriate formula each.

Fill in all the remaining blanks in the table below and fill out the appropriate formula each.Residual maturityResidual MaturityInterest rate of Zero coupon bondPrice of Zero Coupon Bondone-year intrinsic forward interest ratepar yield18.00%27.00%36.00%

Fill in the blanks in the table. Aqueous solutions are assumed. Compound Molality Weight percent Mole...

Fill in the blanks in the table. Aqueous solutions are assumed. Compound Molality Weight percent Mole Fraction NaI 0.15 C2H5OH 5.0 C12H22O11 0.15

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.

Fill in the blanks in the table below. Assume that the MPC is constant over everyone...

Fill in the blanks in the table below. Assume that the MPC is constant over everyone in the economy. MPC Spending Multiplier Change in Government Spending Change in Income 10 100 2.5 -500 0.5 225 0.2 100

5) Fill in the blanks in the table below. Assume that the MPC is constant over...

5) Fill in the blanks in the table below. Assume that the MPC is constant over everyone in the economy. MPC Spending multiplier Change in Government Spending Change in Income 10 50 2.5 -800 0.5 425 0.2 1200

Fill in the blanks to complete the following table.

Fill in the blanks to complete the following table.SymbolIon FormedNumber of Electrons in IonNumber of Protons in IonF__________9Te_____54_____II−_______________Mg2+_____12Part AComplete the first column of the table.Express your answer as a chemical symbol.Part BComplete the second column of the table.Express your answer as ions. Enter your answers in order given in the table, from top to bottom, separated by a comma.Part CComplete the third column of the table.Express your answer as integers. Enter your answers in order given in the table, from...

ACTIVITY 3 Fill in the table below. Capital Total Product Marginal Product Average Product 0 0...

ACTIVITY 3 Fill in the table below. Capital Total Product Marginal Product Average Product 0 0 ------------------ ----------------- 1 20 2 50 3 90 4 136 5 170 6 198 At what amount of capital do we see diminishing marginal returns? Fill in the table below. Capital Total Product Marginal Product Average Product 0 0 -------------------- ------------------ 1 45 2 65 3 58 4 224 5 36 6 48 At what amount of capital do we see diminishing marginal returns?...

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...