Describe where the law of diminishing marginal productivity begins for We R' Write. We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not? If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why? Number of Workers per Day Pens Produced per Day Average Product Marginal Product Price per Pen Total Value Product Average Value Product Marginal Value Product Price of Worker per Day 0 0 --- --- $3.50 $0.00 --- --- $560 15 1,000 66.67 67 $3.50 $52.50 $233.33 $233.33 $560 30 2,700 90.00 113 $3.50 $105.00 $315.00 $396.67 $560 45 5,100 113.33 160 $3.50 $157.50 $396.67 $560.00 $560 60 7,900 131.67 187 $3.50 $210.00 $460.83 $653.33 $560 75 12,000 160.00 273 $3.50 $262.50 $560.00 $956.67 $560 90 15,700 174.44 247 $3.50 $315.00 $610.56 $863.33 $560 105 18,100 172.38 160 $3.50 $367.50 $603.33 $560.00 $560 120 20,300 167.17 147 $3.50 $420.00 $592.08 $513.33 $560 135 21,900 162.22 107 $3.50 $472.50 $567.78 $373.33 $560 150 22,300 148.67 27 $3.50 $525.00 $520.33 $93.33 $560 165 22,300 135.15 0 $3.50 $577.50 $473.03 $0.00 $560 180 21,500 119.44 -53 $3.50 $630.00 $418.06 -$186.67 $560
Describe where the law of diminishing marginal productivity begins for We R' Write. We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not? If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why? Number of Workers per Day Pens Produced per Day Average Product Marginal Product Price per Pen Total Value Product Average Value Product Marginal Value Product Price of Worker per Day 0 0 --- --- $3.50 $0.00 --- --- $560 15 1,000 66.67 67 $3.50 $52.50 $233.33 $233.33 $560 30 2,700 90.00 113 $3.50 $105.00 $315.00 $396.67 $560 45 5,100 113.33 160 $3.50 $157.50 $396.67 $560.00 $560 60 7,900 131.67 187 $3.50 $210.00 $460.83 $653.33 $560 75 12,000 160.00 273 $3.50 $262.50 $560.00 $956.67 $560 90 15,700 174.44 247 $3.50 $315.00 $610.56 $863.33 $560 105 18,100 172.38 160 $3.50 $367.50 $603.33 $560.00 $560 120 20,300 167.17 147 $3.50 $420.00 $592.08 $513.33 $560 135 21,900 162.22 107 $3.50 $472.50 $567.78 $373.33 $560 150 22,300 148.67 27 $3.50 $525.00 $520.33 $93.33 $560 165 22,300 135.15 0 $3.50 $577.50 $473.03 $0.00 $560 180 21,500 119.44 -53 $3.50 $630.00 $418.06 -$186.67 $560
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 15P
Related questions
Question
- Describe where the law of diminishing marginal productivity begins for We R' Write.
- We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not?
- If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why?
|
Number of Workers per Day |
Pens Produced per Day |
Average Product |
Marginal Product |
Price per Pen |
Total Value Product |
Average Value Product |
Marginal Value Product |
Price of Worker per Day |
|
0 |
0 |
--- |
--- |
$3.50 |
$0.00 |
--- |
--- |
$560 |
|
15 |
1,000 |
66.67 |
67 |
$3.50 |
$52.50 |
$233.33 |
$233.33 |
$560 |
|
30 |
2,700 |
90.00 |
113 |
$3.50 |
$105.00 |
$315.00 |
$396.67 |
$560 |
|
45 |
5,100 |
113.33 |
160 |
$3.50 |
$157.50 |
$396.67 |
$560.00 |
$560 |
|
60 |
7,900 |
131.67 |
187 |
$3.50 |
$210.00 |
$460.83 |
$653.33 |
$560 |
|
75 |
12,000 |
160.00 |
273 |
$3.50 |
$262.50 |
$560.00 |
$956.67 |
$560 |
|
90 |
15,700 |
174.44 |
247 |
$3.50 |
$315.00 |
$610.56 |
$863.33 |
$560 |
|
105 |
18,100 |
172.38 |
160 |
$3.50 |
$367.50 |
$603.33 |
$560.00 |
$560 |
|
120 |
20,300 |
167.17 |
147 |
$3.50 |
$420.00 |
$592.08 |
$513.33 |
$560 |
|
135 |
21,900 |
162.22 |
107 |
$3.50 |
$472.50 |
$567.78 |
$373.33 |
$560 |
|
150 |
22,300 |
148.67 |
27 |
$3.50 |
$525.00 |
$520.33 |
$93.33 |
$560 |
|
165 |
22,300 |
135.15 |
0 |
$3.50 |
$577.50 |
$473.03 |
$0.00 |
$560 |
|
180 |
21,500 |
119.44 |
-53 |
$3.50 |
$630.00 |
$418.06 |
-$186.67 |
$560
|
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