. The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. What’s your opinion at what stage of production producer should make addition in labour, identify which concept in economics explains the whole situation, and justify your answer why it happens

Q: In short-run production with two inputs where land is a fixed input labor is a variable input, once…

A: Marginal product of labor (MPL) is defined as the change in the product of labors by employing one…

Q: Suppose the hourly wage is $25, the price of each unit of capital is $50, and the price of output is…

A: The marginal product of labour is the change in production that occurs when more labour is added,…

Q: Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor…

A: q = 100 x K0.75L0.25 Marginal product of labor, MPL = dq / dL = 100 x 0.25 x (K / L)0.75 = 25 x (K /…

Q: Suppose the hourly wage is $20 and the price of each unit of capital is $2. The price of output is…

A: The firm maximizes profit by hiring the number of workers at a point where MPE = w/p

Q: efer to the graph. Which one of the following would cause a move from point d to point e along…

A: A cost curve is a graph representing production costs as a function of total amount produced in…

Q: Q2.The hiring of labour with fixed factor of production under short run after sometimes leads to…

A: The law of variable proportion states that as a for increases the quantity of one factor of…

Q: The price of factor A is GHC20 per unit and the price of factor B is GHC300.00 per unit.The marginal…

A: Answer: As per the given question price of factor A is GHC20 per unit and the price of factor B is…

Q: Suppose Charles owns a lawn mowing company, Assume that without workers, no yards are mowed. When he…

A: Marginal product refers to change in total product with respect to change in its variable input.

Q: Answer the question on the basis of the following output data for a firm. Assume that the amounts of…

A: Average product is the average result (or items) delivered by each info (regularly, number of…

Q: Answer the question on the basis of the following output data for a firm. Assume that the amounts of…

A: Answer to the question is as follows:

Q: If we assume that labor is the only variable input, the slope of the short run total product curve

A: Marginal Product of labour is defined as the increase in total production of the company when one…

Q: Distinguish between the following and show their importance in production theory emphatically a.…

A: Answer: Step 1: The short run is the time period during which some factors of production (input) are…

Q: Q 1. The hiring of labour with fixed factor of production under short run after sometimes leads to…

A: 1) The law of variable proportion states that when total output of a good is increased by adding…

Q: the total product of two workers is 80 and the total product of three workers is 90, then the…

A: The given information can be summarised in the following table :- Workers TP MP AP 2 80 - 40…

Q: The invention of a new machine serves as a mobile station for receiving and accumulating packed…

A: Isoquant refers to the locus of input combination points which provides a certain level of output ,…

Q: Suppose that a firm's only variable input is labor. The firm increases the number of employees from…

A: The labor market of the economy determines the equilibrium wage rate for the workers in the economy.…

Q: Define marginal product of labor and value of the marginal product of labor. Describe how a…

A: As per the given question: Here we need to find the following points : Marginal Product of Labor :…

Q: Suppose there are two primary factors of production, labour (L) and capital (K), and there are…

A: Given  Production function  Y=cKL ........ (1)  where c is constant  K denotes capital and L denotes…

Q: If the marginal revenue product of a gallon of oil used as input by a firm is $2.20 and the price of…

A: Marginal revenue product (MRP) is the marginal revenue created by using one additional unit of…

Q: Suppose that the Law of Diminishing Returns sets in immediately (that is, there is no range of…

A:

Q: What does the assumption of market clearing imply? Explain. How applicable is this assumption to the…

A: What does the assumption of market clearing imply? Explain. Answer: A market-clearing appears when…

Q: For the following industries, state whether the long-run average cost curve has an extended range…

A: Returns to scale is the quantitative change in outputs of an industry or firm in response to an…

Q: Kelsey owns a cotton candy shop that employs 7 people. The employees are paid $12 per hour, and a…

A: Factors of production are paid according to their marginal productivity. The profit maximisation…

Q: Q1-Select the true or false for the following statement also give the explanation and support your…

A: Meaning of Law of Variable Proportions: The term law of variable proportions refers to the…

Q: Suppose that the production function takes on the following form: Q = E$K} || If Capital is equal to…

A: Given information Production function Q=E1/3K1/3 E is labor  K is capital Capital is given = 64…

Q: Q5. The hiring of labour with fixed factor of production under short run after sometimes leads to…

A: According to the ‘Law of variable proportion’ there are three different stages of production:…

Q: fer to Figure 1 in Question 11. The car-repair shop charges $150 per repair.  What is the value of…

A: Number of Machines (A) Number of Cars Repaired (B) 0 0 1 8 2 12 3 15 4 17 5 18

Q: In the long-run with strictly convex isoquants. If the relative price of labor (?⁄?) exceeds the…

A: Answer to the question is as follows :

Q: Consider a short run production function q = cL+K,using L units of labour and K units of capital:…

A: Return to scale exhibits proportionate increase in productivity when there is change in all input by…

Q: If any entrepreneur runs a business and takes out 100,000 naira per year as "salary" from the total…

A: Implicit cost: Any cost that has already occurred but not disclosed or reported as a distinct item…

Q: .Suppose the marginal product of labor is MPL=10 and the cost of each worker is w=50.  What is the…

A: MPL=10 w=50

Q: Consider a firm that employs capital and labour and uses the production technology Q = min[K, L]…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Which of the following describes the law of diminishing returns to labor?     A. When one more…

A: The law of diminishing returns to labour states that as more and more units of labour are hired in…

Q: Why does the learning curve apply mainly to direct rather than indirect labor?

A: The learning curve implies that labor becomes more efficient after working for several years. This…

Q: Please only answer d Consider the following Cobb-Douglas production function: Y = 10 L^0.4 K^0.4.…

A: Answer - Need to find- Effect on the total costs when wage increase from 20 to 30    Given wage Bill…

Q: It is easy to conclude that when hiring workers in the short run whose marginal productivity rises,…

A: When the marginal product is increasing, the average product increases because the addition of every…

Q: Suppose you are considering hiring another worker. Also assume that you are at a firm that is…

A: We know that at the optimum: MRTS = MPL/MPK = w/r So here we have MPL = 5, MPK = 20 and w=2 and r=…

Q: Suppose that an economy produces 1,400 units of output, employing 20 units of Input, and the price…

A: Given: The economy produces an output of = 1,400 units It employs = 20 units of input The price of…

Q: Distinguish carefully between labor-augmenting and labor-saving technological change.  Explain your…

A: Technological change is an important factor that promotes economic growth of a country. Through…

Q: Dolls are fabricated in a process with two resources. The first resource has a capacity of 1.5 dolls…

A: The correct answer is given in the second step.

Q: the envelope curve be tangential to the bottom of each of the short-run average cost curves? Explain…

A: In Economics, qualification is frequently made between the short-run and long-run. In the short-run…

Q: A profit maximizing firm produces output using capital, K, and labour, L, in the following…

A: Profit is maximized when the marginal rate of technical substitution is equal to the ratio of prices…

Q: Following is information on the production levels of three different firms. Firm A is currently…

A: a. The returns to the factors of production used indicate the level of operation of the firms in the…

Q: in the long-run with strictly convex isoquants. If the relative price of labor (w/r)exceeds the…

A: Isoquants: An isoquant (meaning equal), is a microeconomic term, it is a contour line that is drawn…