You pay $252 for each unit of labour. If the marginal product of labour is $7,...

You pay $252 for each unit of labour. If the marginal product of labour is $7, what is the marginal cost of output?

Expert Solution

Ans. We have given wage rate ( W ) = $252 and the marginal product of labor ( MP_L) = $7

Then

Marginal Cost ( MC ) = wage rate (W)/the marginal product of labor ( MP_L)

= $252/$7

= $36

Hence, the marginal cost of output is $36.

Rahul Sunny answered 2 years ago

Marginal Product of Labour &

Marginal Product of Labour If the production function is Q=450√L – 5L Where Q denotes output and L denotes the size of the workforce, Calculate the value of MPL when L = 3 L = 15 L = 100 L = 2300 Discuss the implication of the results.

What is the relationship between marginal product of labour and marginal cost?

Marginal product of labour will always decrease, but the marginal costs of production could decrease, increase,...

Marginal product of labour will always decrease, but the marginal costs of production could decrease, increase, or remain unchanged. True or False

Country A and B each have 1000 units of labour. In-country A one unit of labour...

Country A and B each have 1000 units of labour. In-country A one unit of labour can produce 10 computers or 30 kg of cheese. Country B can use one unit of labour to produce 14 KG of cheese or 16 computers. Suppose country B follows its comparative advantage in deciding what to produce and trades with Country A at a trade price of 1.7 kg of cheese per computer and country B consumes 6400 computers at home, then country...

Suppose a firm's hourly marginal product of labour is given by MPN = A(200 – N)....

Suppose a firm's hourly marginal product of labour is given by MPN = A(200 – N). Here, A measures labour productivity and N is the number of workers. If A = .2 and the real wage is $10 per hour, how much labour (number of workers N) will the firm want to hire? Suppose the real wage rate rises to $20 per hour. How much labour (number of workers N) will the firm want to hire? With the real wage...

1: Marginal revenue product equals a. marginal revenue multiplied by marginal product b. marginal product multiplied...

1: Marginal revenue product equals a. marginal revenue multiplied by marginal product b. marginal product multiplied by total revenue c. total revenue multiplied by total product d. marginal revenue multiplied by total product 2: The long-run is a period of time a. during which at least one input is variable b. during which at least one input is fixed c. sufficient to vary all inputs in the production process d. greater than one year 3: Marginal cost equals a. average...

When the point of diminishing marginal product is reached, the addition of one more unit of...

When the point of diminishing marginal product is reached, the addition of one more unit of labor will cause total product to ____ Diminishing marginal returns (= diminishing marginal product of labor) implies that marginal costs are ____ Refer to table below, which gives a firm's production function. Assume that all non-labor inputs are fixed. Diminishing marginal returns set in with the addition of the ________ worker. Total product data Number of workers Units of output 0 0 1 10...

A monopolist produces a product with a constant marginal cost equal to $400 per unit and...

A monopolist produces a product with a constant marginal cost equal to $400 per unit and a fixed cost of $80000. The demand for the product is Q= 500-0.5*P. The monopolist’s maximal profits are equal to a) $0.00 b) $5000.00 c) $45000.00 d) None of the above.

4. EFG Manufacturing has a product that sells for $15 per unit, and the marginal cost...

4. EFG Manufacturing has a product that sells for $15 per unit, and the marginal cost is $5.00. a. Compute the Lerner index for EFG Manufacturing. b. If this index indicates market power, under what condition(s) will this market power last in the long-run? Explain.

1. If the marginal product is _, the value of marginal product must be _. Select...

1. If the marginal product is _____, the value of marginal product must be _____. Select one: a. rising; zero b. falling; falling c. rising; falling d. falling; rising 2. The amount by which an additional unit of a factor increases a firm's total _____ during a period is the _____. Select one: a. cost; value of marginal product b. revenue; marginal factor cost c. cost; marginal product d. revenue; value of the marginal product 3. The demand for factors...

Question