Question
In: Economics
Consider the following information for a T-shirt manufacturing firm that can sell as many T-shirts as...
Consider the following information for a T-shirt manufacturing firm that can sell as many T-shirts as it wants for $10 per shirt.
| # of Workers | # of shirts produced per day | MPI | TR | MRPI |
| 0 | 0 | |||
| 1 | 40 | |||
| 2 | 85 | |||
| 3 | 135 | |||
| 4 | 195 | |||
| 5 | 50 | |||
| 6 | 285 | |||
| 7 | 315 | |||
| 8 | 200 | |||
| 9 | 100 |
a) Fill in the missing parts of the above table.
b) Verify that MRPl can be calculated in two ways: by change in TR and MPl times product price. If this firm must pay a rate of $285 per day, how many workers would be hired? Briefly explain.
c) Determine the highest wage rate necessary to hire 8 workers. Explain your answer.
d) Suppose the firm adopts a new technology that doubles output at each level of employment and that the price of shirts stays the same. Assume the wage rate is $285 per day. What would be the effect on the new technology on employment? Explain.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
P&L is a profit-maximizing shirt manufacturing firm. The firm can sell all the shirts it can...
P&L is a
profit-maximizing shirt manufacturing firm. The firm can sell all
the shirts it can produce to retailers at a price of $20 each.
P&L can hire all of the workers it wants at a market wage of
$120 per day per worker. The table below shows the firm’s short-run
production function.
Number of
Workers
Number of
Shirts per Day
0
0
1
10
2
25
3
45
4
60
5
72
6
80
7
85
8
82
Answer...
You are given the following information for a T-shirt manufacturing firm: Price per T-shirt is $5....
You are given the following information for a T-shirt
manufacturing firm: Price per T-shirt is $5. With Total Labor Units
as 1 employee, the firm’s Total Product (TP) is 20 shirts/day; with
2 employees, TP=50 shirts/day; with 3 employees, TP=75 shirts/day;
with 4 employees, TP=95 shirts/day; and with 5 employees, TP=110
shirts/day. With zero employees, it produces nothing. Therefore,
the maximum payment to labor per day that this profit-maximizing
T-shirt manufacturer would be willing to make when it wants to...
The Shirt Works sell a large variety of tee shirts and sweat shirts. Steve Hooper, the...
The Shirt Works sell a large variety of tee shirts and sweat
shirts. Steve Hooper, the owner, is thinking of expanding his sales
by hiring high school students , on a commission sales basis, to
sell sweatshirts bearing the name and mascot of the local high
school.
These sweatshirts would have to be ordered from the
manufacturer six weeks in advance, and they could not be returned
because of the unique printing required. The sweatshirts would cost
Hooper $8 each...
goodness of fit A buyer for a t-shirt shop wants to compare the proportion of t-shirts...
goodness of fit A buyer for a t-shirt shop wants to compare the
proportion of t-shirts of each size that are sold to the proportion
that were ordered. The buyer counts the number of t-shirts of each
size that are sold in a week. size Sold Percentage ordered Small 25
10% Medium 41 20% Large 91 40% Extra Large 68 30% Does the
distribution of the sold items follow the distribution of the
ordered items?
State the null and alternative...
A T-shirt manufacturer is planning to expand its workforce. It estimates that the number of T-shirts...
A T-shirt manufacturer is planning to expand its workforce. It
estimates that the number of T-shirts produced by hiring x new
workers is given by T(x)equalsnegative 0.25 x Superscript 4
Baseline plus 8 x cubed, 0less than or equalsxless than or
equals24. When is the rate of change of T-shirt production
increasing and when is it decreasing? What is the point of
diminishing returns and the maximum rate of change for T-shirt
production? Graph T and Upper T prime on...
The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations:
The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Purchased 400 units 8$3,200 Apr. 21 Purchased 200 units @ $10= 2,000 July 25Purchased 280 units e 13 3,640 Sept. 19 Purchased 90 units 151,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO,...
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of...
The Shirt Shop had the following transactions for T-shirts for
Year 1, its first year of operations:
Jan. 20
Purchased
490
units
@
$
8
=
$
3,920
Apr. 21
Purchased
290
units
@
$
10
=
2,900
July 25
Purchased
370
units
@
$
13
=
4,810
Sept. 19
Purchased
180
units
@
$
15
=
2,700
During the year, The Shirt Shop sold 1,080 T-shirts for $24
each.
b. Record the above transactions in general journal form and...
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of...
The Shirt Shop had the following transactions for T-shirts for
Year 1, its first year of operations:
Jan. 20
Purchased
400
units
@
$
8
=
$
3,200
Apr. 21
Purchased
150
units
@
$
10
=
1,500
July 25
Purchased
200
units
@
$
12
=
2,400
Sept. 19
Purchased
100
units
@
$
14
=
1,400
During the year, The Shirt Shop sold 650 T-shirts for $19
each.
Required
Compute the amount of ending inventory The Shirt Shop...
The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations:...
The Shirt Shop had the following transactions for T-shirts for
2016, its first year of operations:
Jan. 20
Purchased
460 units @ $8
=
$
3,680
Apr. 21
Purchased
260 units @ $10
=
2,600
July 25
Purchased
340 units @ $13
=
4,420
Sept. 19
Purchased
150 units @ $15
=
2,250
During the year, The Shirt Shop sold 990 T-shirts for $24
each.
Required
a.
Compute the amount of ending inventory The Shirt Shop would...
The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations:...
The Shirt Shop had the following transactions for T-shirts for
2018, its first year of operations:
Jan. 20
Purchased
400
units
@
$
4
=
$
1,600
Apr. 21
Purchased
90
units
@
$
5
=
450
July 25
Purchased
250
units
@
$
7
=
1,750
Sept. 19
Purchased
60
units
@
$
9
=
540
During the year, The Shirt Shop sold 650 T-shirts for $14
each.
Required
a. Compute the amount of ending inventory The
Shirt Shop...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Compare the details of the passwd and shadow files under /etc/ –Who is the owner and...
- Fact Scenario: Quik Results, Inc.(QRI), a Michigan corporation, makes and sells Power Up!, a super...
- Write a C code program to implement the comparisons of three integer numbers, using only conditional...
- What is the reason/s behind unit and system testing? Discuss in 120–150 words.
- A baseball crosses home plate with a velocity of 89.8 miles per hour, at an angle...
- ou have learned that earnings functions are one of the most investigated relationships in economics. These...
- ssume a corporation's bond has 14 years remaining until maturity. The coupon interest rate is 9.6%...
ADVERTISEMENT