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- What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?QUESTION 4 Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. Diminishing marginal returns become evident with the addition of the labor/s Output Labors (TP) 1. 90 126 4. 150 165 180 O A. Sixth B. Fourth CC. Third D. Second Click Save and Submit to save and submit. Click Save All Answers to save all ansuers. Save All AnsW DELL 40 3. 5.Referring to Figure 6, Firm X uses labour (L) as the main inputs. Which of the following statements is false? Output per month E A Labor per month Figure 6 O a. At point E the average product of labor is negative. Ob. At point E the marginal product of labor is decreasing. O c. At point E the marginal product of labor is negative. O d. At point E the average product of labor is decreasing.
- Total product (meals per hour) 24 20 TP 16 12 2 Quantity of labor (workers) The figure shows the total product curve for the Fruit Bowl food truck. If the food truck increases production from 10 to 17 meals per hour, the marginal product is in the range where it and the marginal product is the average product. O A) increases; greater than B) decreases; greater than C) increases; is equal to D) does not change; is equal to O E) increases; less than 4.The short-run production function for a manufac- turer of wireless earbuds is shown in the table below. Based on this information, answer the fol- lowing questions. Input of Labor (workers per week) Total Output of Wireless Earbuds 1 25 2 60 3 85 4 105 115 6 120 a. Calculate the average product at each quantity of labor. b. Calculate the marginal product of labor at each quantity of labor. c. At what point does marginal product begin to diminish?Underground Sandwiches, a sandwich shop, has the following marginal physical product curve (labeled MPP) for its hourly production. MPP and AP (Sandwiches per hour) 20 18 16 14 12 10 8 6 4 2 0 0 1 O 2 3 QUANTITY OF LABOR 4 MPP 5 When labor increases from four to five workers, total product increases by AP per hour.
- Suppose Mr. Saad is a producer of Lola Loo chocolate, following is the information available of his production plant. Quantity of Labour (L) Quantity of 1 2 3 4 5 Capital (K) 10 15 25 100 50 20 30 40 50 75 50 75 100 125 150200250 300 75 90 105 120 2 30 50 62 15 If K and Lare imperfect substitutes and complements from the information above draw at least three isoquant (map) and identify the level of production. H73 4QUESTION 2 K 6 isocost 3 L Based on the information in the graph aboive, what is the slope of the isocost line? # If the price of capital remains the same and the price of labor decreases, the isocost line will With the current mix of labor and capital, the marginal technical rate of subsitution is MRTS-3. If the prices of labor and capital remain as shown in the graph, then the firm will minimize the cost of production by +According to the law of diminishing return in short run O as we hire more labors, while other inputs are fixed, the marginal product of exah extra labor will decrease O If we double all inputs, output will increase by less than double O If we double all inputs, output will decrease by more than double O If we double all inputs, output will increase by double
- The figure shows the total product curve for different levels of a variable input, labor. Output Total Product curve АВ с D E Quantity of Labor In the figure, at point C O average product equals marginal product O marginal product is at a maximum total product is increasing at an increasing rate average product is declining but positive10. the olowing 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. + APMP 100 80 60 MP AP 20 40 60 80 100 120 140 10 Labor What is AVC at its minimum? Multiple Choice O $80 when AP is maximzed O $15 . O$25 .O$40 120000 . O$100 2,000 Ave rage ard m arginal prodictof laborIn the short run, the cost of O a. capital; labor O b. labor; capital c. electricity; wages d. raw materials; labor O e. capital; raw materials is variable, whereas the cost of is fixed. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.