The corresponding table shows the production and cost information for a perfectly competitive firm that produces anvils. Quantity produced 5 10 22 32 40 47 53 58 64 Total cost 20 30 43 59 78 90 115 143 174 Total revenue 12.5 25 55 80 100 117.5 132.5 145 160 What is the price of each anvil? price per anvil: $ Number of workers 1 2 3 4 5 6 units 7 8 9 Assume the company currently employs 8 workers. If they add one worker so that they have 9 workers, what is the additional worker's marginal (physical) product? marginal product of labor: Assume the company currently employs 4 workers. If they add one worker so that they have 5 workers, what is the additional worker's marginal revenue product? marginal revenue product: $_

The corresponding table shows the production and cost information for a perfectly competitive firm that produces anvils. Quantity produced 5 10 22 32 40 47 53 58 64 Total cost 20 30 43 59 78 90 115 143 174 Total revenue 12.5 25 55 80 100 117.5 132.5 145 160 What is the price of each anvil? price per anvil: $ Number of workers 1 2 3 4 5 6 units 7 8 9 Assume the company currently employs 8 workers. If they add one worker so that they have 9 workers, what is the additional worker's marginal (physical) product? marginal product of labor: Assume the company currently employs 4 workers. If they add one worker so that they have 5 workers, what is the additional worker's marginal revenue product? marginal revenue product: $_

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
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Coldbox Corporation hires its workers in a perfectly competitive labor market and produces and sells frozen peas in a perfectly competitive product market. The market price for frozen peas is $4 per bag. The table below shows Coldbox' short-run production of frozen peas. Labor is the only variable input. Coldbox Corporation's fixed cost is $500. Number of Workers Bags of frozen peas 0 0 1 60 2 140 3 250 4 320 5 380 6 400 a) If the wage is $200 per worker, identify the profit-maximizing number of workers for Coldbox. Explain using marginal analysis. b) If the price of frozen peas decreases by $2 per bag, would the number of workers hired by Coldbox be more than, less than, or equal to the number of workers you identified in part (a) ? Explain. c) Suppose that Coldbox hires workers from a monopsonistic labor market. Would the wage be higher, lower, or equal to the equilibrium wage in a perfectly competitive market? Explain.
LUSC Method of producing that output The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000. None of these options are correct. APMP 100 80 AO MP 160 40 140 120 100 20 80 60 Labor 40 20 When the firm uses 60 units of labor, what is average total cost at this output? otal th ear- edule and erstanding of on between AVC ie mns 1 and 2 of Table 8.7. The r- n column 3 of Table 8.8. The rela- ws: Consider the 100 units of output riable cost of using 4 workers is found workers employed: ict to 0x4 ise DO00000000 Jog jopipaidjen Bue u pie abes ad
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11:16 Fri 10O Dec * 9 80% ... managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A 22 of 46 AP Microeconomics Page 21 of 46 AP CollegeBoard Test Booklet Unit 5 Problem Set - FRQ's Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. The table below shows the short-run production function for Josh's Consulting Firm. Number of Consultants Total Product per Hour 1 21 2 43 3 66 4 88 108 6. 126 7 141 8. 151 (a) After which consultant do diminishing marginal returns begin for Josh's Consulting Firm? Explain using numbers. (b) Assume Josh's Consulting Firm sells its consulting services in a perfectly competitive market at a unit price of $2. Calculate the marginal revenue product of the fifth consultant. Show your work. (c) Josh's Consulting Firm hires…