A small business consists of an owner and a seamstress. The seamstress can sew 20 dresses per month. The owner can hire only two more seamstresses. (Other things being equal, each of them has the same labor productivity as the one already hired.) However, there is only one sewing machine available in the short run, resulting in a total product of 31 dresses if one additional seamstress is hired. Hiring the third seamstress increases the total product by an additional 7 dresses. If the owner hires all three seamstresses, what is the difference in the total product if the owner purchases one additional sewing machine as compared to a situation with only one sewing machine? Write the exact answer. Do not round. Keyрad Answer Keyboard Shortcu dresses

A small business consists of an owner and a seamstress. The seamstress can sew 20 dresses per month. The owner can hire only two more seamstresses. (Other things being equal, each of them has the same labor productivity as the one already hired.) However, there is only one sewing machine available in the short run, resulting in a total product of 31 dresses if one additional seamstress is hired. Hiring the third seamstress increases the total product by an additional 7 dresses. If the owner hires all three seamstresses, what is the difference in the total product if the owner purchases one additional sewing machine as compared to a situation with only one sewing machine? Write the exact answer. Do not round. Keyрad Answer Keyboard Shortcu dresses

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

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1. Consider a firm with Total Output function (Production Function) given by Q = 6L2 – 0.4L3, where L is variable labor input. The firm is faced with the decision to hire the optimal number of workers in order to maximize its output level. (a) Obtain the Marginal Product function. (b) Find the Average Product function. (c) Determine the level of employment that would maximize the firm’s output level. (d) Verify that the second-order condition is met for the firm's output maximum.
ONLY ANSWER C & D Consider a firm with Total Output function (Production Function) given by Q = 6L2 – 0.4L3, where L is variable labor input. The firm is faced with the decision to hire the optimal number of workers in order to maximize its output level. (a) Obtain the Marginal Product function. (b) Find the Average Product function. (c) Determine the level of employment that would maximize the firm’s output level. (d) Verify that the second-order condition is met for the firm's output maximum.
From the production data in the table below, calculate the VMP, for the 2nd unit of labor. Assume the wage rate is $80 and the price of the firm's output is $5. (Give the numeric value only for your response; do not include commas, dollar signs, etc.) Capital Labor Output (Q) 100 100 1 20 100 44 100 66 100 4 84 100 96 100 104 100 7 98 Numeric Response
only answer D 1. Consider a firm with Total Output function (Production Function) given by Q = 6L2 – 0.4L3, where L is variable labor input. The firm is faced with the decision to hire the optimal number of workers in order to maximize its output level. (a) Obtain the Marginal Product function. (b) Find the Average Product function. (c) Determine the level of employment that would maximize the firm’s output level. (d) Verify that the second-order condition is met for the firm's output maximum.
The marginal product of the 14 th worker is 8 and the firm sells its output for $4 per unit. If labor is the only variable cost, then the value of the 14 th worker's marginal product is $2. $4. $12. $32.
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b) Let PA = 30 , Pg = 10. Suppose Ezhel wishes to produce 10,000 songs. How much hours Dj Artz and Bugy %3D should he employ? How much will it cost to produce? c) Suppose that Ezhel wants to produce is now 18,371 songs, but Bugy is not available to contribute his album more than previous level in the short-run. Assuming he is unable to employ Bugy for more hours, how much will it cost to meet the new production level? d) In the long-run, Ezhel will be able to employ Bugy. If Ezhel continues to produce 18,371 units of songs, how much will it cost in the long run?
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