5. The marginal product of labor (MPL) intersect with the average product of labor (APL) at...

5. The marginal product of labor (MP_L) intersect with the average product of labor (AP_L) at the point where AP_L reaches its maximum. Show mathematically that MP_L = AP_L at the point of intersection.

Expert Solution

Rahul Sunny answered 2 years ago

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...

Assume that the marginal product of labor (MPL) = 10. And the marginal product of capital...

Assume that the marginal product of labor (MPL) = 10. And the marginal product of capital (MPK = 6. Assume also that the price of labor (PL) = 4 and the price of capital (PK) = 2. Do you agree or disagree that the firm should substitute capital for labor? Explain why with a narrative explanation and a graph.

Suppose marginal product of labor (MPL) = 0.3*K and wage = $ 2 while the marginal...

Suppose marginal product of labor (MPL) = 0.3*K and wage = $ 2 while the marginal product of capital (MPK) = 0.7*L and price of capital = $ 1. (a) What the marginal Rate of technical substitution between labor and capital at L = 50 and K = 100? (b) What is the relative wage ratio? (c) Is the input allocation L=50 and K=100 optimal?

Using graphs, show the relationship between production and costs, by using marginal product of labor (MPL),...

Using graphs, show the relationship between production and costs, by using marginal product of labor (MPL), Average Product of labor (APL), Marginal Cost (MC), and Average Cost (AC) curves?

Question 1) In table 1, Calculate the marginal product of labor and average product of labor....

Question 1) In table 1, Calculate the marginal product of labor and average product of labor. Table 1: Surfboard Production Labor (workers per week) Total Product (surfboards per week) Marginal Product Average product 0 0 - - 1 30 2 70 3 120 4 160 5 190 6 210 7 220 Question 2) Surfboard Production Costs Labor (workers per week) Total Product (surfboards per week) TFC (SAR per surfboard) TVC TOTAL COST AFC AVC ATC MC 0 0 3000...

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

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...

Consider the production function q=5L^(0.3) K^(0.5) The marginal product of labor is MPL=1.5L^(-0.7)K^(0.5) . Assume that...

Consider the production function q=5L^(0.3) K^(0.5) The marginal product of labor is MPL=1.5L^(-0.7)K^(0.5) . Assume that capital is fixed at in the short run. Derive the formula for the short-run total product and graph it. (Hint: Substitute in the production function Derive the formula for the short-run average product of labor (Hint: Divide the short-run total product by)

Why when there are economies of scale, the average and marginal cost functions will never intersect?

1.Table 27 Labor Output Marginal Product of Labor Marginal Revenue Product of Labor Wage 0 0...

1.Table 27 Labor Output Marginal Product of Labor Marginal Revenue Product of Labor Wage 0 0 --- --- --- 1 400 400 $800 $450 2 700 300 $600 $450 3 950 250 $500 $450 4 1050 100 $200 $450 Refer to Table 27. How many workers should the firm hire? A.1 B. 2 C. 3 D. 4 2. If education produces positive externalities and the government does not intervene in the market, we would expect Group of answer choices A....

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