Quiz-3.1, 3.2, 3.3 Calculations E
star
star
star
star
star
Last updated 11 months ago
10 Nsɛmmisa
The Magenta 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 | 50 |
3 | 100 |
For all answers, please include units!
At 0 workers, what is the firm's total product?
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 | 30 | 40 |
L=2 | 50 | 60 | 70 |
L=3 | 100 | 110 | 120 |
When the Yellow Hat Company doubles their resources from 2 L and 2 K to 3 L and 3 K, which of the following occurs?
At 3 workers, what is the firm's average product?
On which worker(s) does the firm have increasing marginal returns?
What is the average fixed cost of 50 units of output?
What is the marginal cost at 2 units of labor?
What is the total cost with 50 units of output?
The marginal product at worker. At the same time the marginal cost at units of output.
What is the total variable cost at 100 units of output?
At which output level(s) does the firm experiencing negative marginal returns?