5. You are the general manager for Mr. Ollinder ("Oll") MacDonald, who owns three farms that all produce wheat and that use only labor as inputs. He has seven loyal farmhands, who are all equally skilled and who he can assign to any of the three farms. Mr. MacDonald is committed to employing the farmhands and to growing wheat. Mr. MacDonald's friend, Mr. S.L.M. ("Slim") Pickins, is an agronomist who works for the U.S. Department of Agriculture. Mr. Pickins has estimated the following relationships between worker-years at a specific farm and total wheat yields (in thousands of bushels) per year at that farm: # of workers 1 2 3 4 5 6 7 Farm A 80 140 180 210 230 245 250 Farm B 40 70 90 105 115 120 123 Farm C 60 85 105 120 130 135 138 a. Mr. MacDonald wants to maximize the output that he can obtain by allocating the seven workers across the three farms. What allocation of the workers will maximize his output? Explain.

5. You are the general manager for Mr. Ollinder ("Oll") MacDonald, who owns three farms that all produce wheat and that use only labor as inputs. He has seven loyal farmhands, who are all equally skilled and who he can assign to any of the three farms. Mr. MacDonald is committed to employing the farmhands and to growing wheat. Mr. MacDonald's friend, Mr. S.L.M. ("Slim") Pickins, is an agronomist who works for the U.S. Department of Agriculture. Mr. Pickins has estimated the following relationships between worker-years at a specific farm and total wheat yields (in thousands of bushels) per year at that farm: # of workers 1 2 3 4 5 6 7 Farm A 80 140 180 210 230 245 250 Farm B 40 70 90 105 115 120 123 Farm C 60 85 105 120 130 135 138 a. Mr. MacDonald wants to maximize the output that he can obtain by allocating the seven workers across the three farms. What allocation of the workers will maximize his output? Explain.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 6QR

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2. Inputs and outputs Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Santa Barbara that specializes in vegan pizzas. Malika's small shop has barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Malika signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building’s size constraint, Malika is unable to change the store’s number of pizza ovens in the short run. However, Malika does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Malika contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are inputs, and pizza ovens are inputs. The following table presents Malika's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column…
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