Question
In: Economics
The short-run production function for a manufacturer of DVD drives is as follows:
The short-run production function for a manufacturer of DVD drives is as follows:
Number of Workers (Quantity of Labor) Total Output of DVD Drives
0 0
1 7000
2 20000
3 30000
4 36000
5 40000
6 42000
Calculate the average product (AP) at each quantity of labor.
Calculate the marginal product (MP) at each quantity of labor.
After which worker do diminishing marginal returns set in?
In the region of diminishing marginal returns, what is happening to marginal cost? Explain.
Solutions
Expert Solution
a) & b) Ans:
|
Number of workers (Quantity of Labor) |
Total Output of DVD Drives | AP | MP |
| 0 | 0 | -- | -- |
| 1 | 7000 | 7000 | 7000 |
| 2 | 20000 | 10000 | 13000 |
| 3 | 30000 | 10000 | 10000 |
| 4 | 36000 | 9000 | 6000 |
| 5 | 40000 | 8000 | 4000 |
| 6 | 42000 | 7000 | 2000 |
Explanation:
AP = Total Product / Number of workers
MP = Change in Total Product / Change in Number of workers
c) Ans: After 2nd worker diminishing marginal returns sets in.
d) Ans: In the region of diminishing marginal returns, marginal cost increases. Becuase marginal product and marginal costs are inversely related.
Rahul Sunny answered 1 year agoRelated Solutions
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production.
Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production.
Differentiate short run and long run production function.
Question 4 A firm has the short-run production function as follows: Q = L + 15L2...
Question 4
A firm has the short-run production function as follows:
Q = L + 15L2 – 0.5L3,
where Q = total products per period and L = number of workers
employed per period.
4.1) Derive the marginal product of labor (MPL). At
what number of workers (L) does the law of diminishing returns
begin?
MPL = f(L) = __________________________________
Law of diminishing return begins when L
= ___________ workers.
4.2) Derive the average product of labor (APL). Find
the number...
Explain the relationship between a firm’s short-run production function and its short-run cost function. Focus on...
Explain the relationship between a firm’s short-run production
function and its short-run cost function. Focus on the marginal
product of an input and the marginal cost of production. (p. 283
#3
. Distinguish the long-run production from the short-run and explain the various long run production function...
. Distinguish the long-run production from the short-run and
explain the various long run production function with the help of
isoquants.
Suppose a firm's short run-run production function is q = 2 * L0.5 , the firm...
Suppose a firm's short run-run production function is q = 2 *
L0.5 , the firm faces a fixed price of L at PL = 4, and
the firm’s fixed cost is 50.
a. Derive the short-run total cost and total variable cost
functions, and then solve for the marginal cost, average variable
cost, and average total cost functions. Assume the firm is a
marginal price taker at P = 60, solve for the firm’s
profit-maximizing amount of L to...
a. Distinguish between the short run and the long run production function. Discuss the four factors...
a. Distinguish between the short run and the long run
production function. Discuss the four factors of production
elaborately. Provide at least 5 examples of each.
b.
Bangladesh a labor intensive country. So the labor is cheaper than
other factors of production. Consider this case: The number of
Business graduate is higher than the Doctor. Consequently, the
price or wage of Business graduate will be lower than the wage of
Doctor. That discourages the prospective student to be a Business...
Consider a Cobb-Douglas production function: f(L, K) = 0.5K0.5L0.5. Using this production function, solve a short-run...
Consider a Cobb-Douglas production function: f(L, K) =
0.5K0.5L0.5. Using this production function, solve a short-run
profit maximization problem for a fixed capital stock K=4, output
price p=8, wage rate w=2, and capital rental rate r=4
The ABC Corporation produces just one product, widgets. The company’s new economist has calculated a short-run production function as follows:
Technology and Production TheoryThe ABC Corporation produces just one product, widgets. The
company’s new economist has calculated a short-run production
function as follows: Q =
7L + 0.6L2 – 0.1L3Where Q is the number of widgets produced per day and L is the
number of production workers working an eight-hour day.Develop a production schedule with L equaling 1 to 10.Calculate the Average and Marginal Product.
For a short run production function, MPL= 2 and the price at which the good can...
For
a short run production function, MPL= 2 and the price at which the
good can be sold at is $5, more workers will be hired if the price
if the wage rate is less than _____ dollars.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please, i need Unique answer, Use your own words (don't copy and paste). Please, don't use...
- Week 4 Question 1: "Classify the following control activities as preventive, detective or corrective and explain...
- C++ Write a program using switch-case-break that will take an input number as for example 2...
- *** please don't copy and paste and don't use handwriting Q1: Data Modelling is the primary...
- P 14 - 2 On January 1, 2018, Baddour Inc., issued 10% bonds with a face...
- Outline some of the reasons for the difference in life expectancy between men and women
- tcja change the depreciation rules for new Farm machinery and equipment the changes includes
ADVERTISEMENT