Quiz-3.1, 3.2, 3.3 Calculations B
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Posljednje ažuriranje 9 months ago
10
The Red Hat Company makes amazing hats! They are in the short-run and use both labor and capital. Labor is variable and capital is fixed. Their capital cost is $15 and each worker gets paid a wage of $8. Their input and output is listed below.
Qinput | Qoutput |
0 | 0 |
1 | 20 |
2 | 35 |
3 | 25 |
For all answers, please include units!
At 2 worker, what is the firm's total product?
At 0 workers, what is the firm's total variable cost?
Assume the firm is NOW in the long-run as seen in table below. Assume ALL positions on the table are reflective of the long-run. Assume the wage is still $8 and the cost per unit of capital is $15.
Output | K=1 | K=2 | K=3 |
L=1 | 20 | 25 | 30 |
L=2 | 35 | 50 | 65 |
L=3 | 20 | 30 | 40 |
On which number of workers does the firm have diminishing marginal returns?
What is the average variable cost of 20 units of output?
What is the average product at 2 units of labor?
What is the average total cost with 25 units of output?
What is the marginal cost at 25 units of output?
At which output level(s) does the firm experiencing increasing marginal returns?
Which combination of resources would be at the bottom of LR-ATC?