Suppose that the firm has production function F(L,M) = 4L1/2M1/2 (where L is the number of workers and M is that of machines) and currently uses 16 machines. To produce 32 units of output, how many workers does the firm need to hire?
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Suppose that the firm has production function F(L,M) = 4L1/2M1/2 (where L is the number of workers and M is that of machines) and currently uses 16 machines. To produce 32 units of output, how many workers does the firm need to hire?
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- What is the difference between a fixed input and a variable input?Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
- A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.What is a production function?Are fixed costs also sunk costs? Explain.
- Cost curves Egidio Binaccio designed an ancestry app that allows people to connect with long lost Italian relatives. Egidio notices the following relationship between the number of hours he schedules and the number of downloads (sales) he gets. Below is a production function, for Egidios current company set up. NUMBER of LABOUR DOWNLOADS HOURS B) 10 C) 20 30 40 50 60 70 80 90 100 110 120 130 140 6.50 11.00 14.50 17.50 20.50 23.75 27.50 32.00 37.50 44.50 53.50 65.00 79.50 97.50 TVC TC MC AVC Suppose the firm can hire all the labour it would ever want at the going wage of $8 per labour-hour. The firm's total fixed costs are $64 per day. A) ATC Fill in the table showing total variable cost (TVC), total cost (TC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). [Remember: Marginal cost should be entered midway between rows of output.] On a graph with DOWNLOADS (per day) on the horizontal axis, draw the three "per-unit" cost curves, AVC, ATC, and MC. [Note…Can you please help me find the formula for colum C? I have included how the formula's for colum J,K,L,M,N SHOULD input, but I think colum C row 2 keeps getting input wrong. I need to find the equation to input into Excel.Suppose a chair manufacturer maintains the existing plant and equipment. The manufacturer has observed the following levels of production corresponding to different numbers of workers: Number of Workers Number of Chairs 1 10 2 18 3 24 4 28 5 30 28 7 25 a. Calculate the average and marginal product of labor for this production function. APL MPL - 1. 10 2 18 3 24 4 28 5 30 6 28 7 25 b. Does this production function exhibit diminishing returns to labor? Explain. c. Explain intuitively what might cause the marginal product of labor to become negative.
- The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of labour is $200 per unit per day and the fixed cost of the capital is $1500 per day. Click the icon to view the table. 24 28 8 12 16 20 Complete the last four columns of the table. Units of Labour Total Output (per day) (per day) 4 200 24 2450 28 2510 500 1200 1950 2330 2450 $ 1500 2510 $ 4800 $ 1500 $ 5600 TFC TVC $6300 $ 7100 TC MC $ 2.67 $ 1.14 $ 1.07 $ 2.11 $6.67 $ 13.33 AFC $7.5 $3 $ 1.25 $ 0.77 $ 0.64 $ 0.61 AVC $4 $3.2 $2 $ 1.64 $ 1.72 $ 1.96 ATC $ 11.5 $6.2 $ 3.25 $ 2.41 $ 2.36 $ 2.57 $ 2.23 $0.6 (Round your responses to the nearest cent.) b. Assuming that labour is only hired in increments of 4 units, what is this firm's capacity level of output? per day $ 2.83Determine the multifactor productivity for the combined input of the labor and the machine time using the following input : labor :3000$,material :800$, .overhead: 20o0$ . keep in mind the production is 1760 unitThe figure to the right illustrates the long-run average cost curve for a company that makes motors. Suppose the company produces & thousand moters per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 4 theusand motors, then it experiences Average total cont 45.00 44.00 40 00 36.00 32.00 28.00 24.00 20.00 16.00 12:00 5.00 4.00 0.00 Long-nun average cost 4610 12 14 16 18 20 Quantity (motors per month in 1,000)
