A production process uses two inputs, labor and capital. If the marginal product of labor per dollar is higher than the marginal product of capital dollar, what should the firm do to lower costs? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Increase output b Decrease output C Increase the amount of capital d Increase the amount of labor

A production process uses two inputs, labor and capital. If the marginal product of labor per dollar is higher than the marginal product of capital dollar, what should the firm do to lower costs? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Increase output b Decrease output C Increase the amount of capital d Increase the amount of labor

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3PA

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When the first automobiles were built in 1901, they were made by skilled workers using hand tools. Later, in 1913, Henry Ford introduced the moving assembly line, which lowered costs and speeded production. Over the years, the production line has become ever more mechanized, and today robots replace people in many tasks. Search The graph below shows the demand curve for cars in 1901. Suppose the least-possible cost of producing a car is $250 and that the efficient scale is 0.5 cars a day. D Draw the average total cost curve in 1901. Label it ATC₁ 500- 400- Price (dollars per car) 300- Q SON The graph below shows the demand curve for cars in 2020. Suppose the least possible cost of producing a car is $10,000 and that the efficient scale is 200,000 cars a day Draw the average total cost curve in 2020 Label it ATC₂ Price (dollars per car) 50,000 40,000 30,000+ Next Q
answer this question bu not on excel
The munager af a T-airt stand found that the cost to prodice 30 Tahirts is $112 59, while the cont to produce 40 T-shirts is S401.58. Assume the cont C a linear function of a, the number of Tshrts produced. Calculate the marginal cost of a T-shirt, that s the change in cost of producing one additional T-shirt. (Round to 2 decimal places
LUSC Method of producing that output The following 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. None of these options are correct. APMP 100 80 AO MP 160 40 140 120 100 20 80 60 Labor 40 20 When the firm uses 60 units of labor, what is average total cost at this output? otal th ear- edule and erstanding of on between AVC ie mns 1 and 2 of Table 8.7. The r- n column 3 of Table 8.8. The rela- ws: Consider the 100 units of output riable cost of using 4 workers is found workers employed: ict to 0x4 ise DO00000000 Jog jopipaidjen Bue u pie abes ad
The manager of a T-shirt stand found that the cost to produce 1O T-shirts is $112.59, white the cost to produce 40 T-shirts is $401.58. Assune the cost Csa linear function of x, the namber ef T-shirts produced. Calculate the marginal cost ot a T-shirt. that s, the change in cost of producing one additional Tshirt, (Rournd to 2 decimai places
1. Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus's output during a given day: Workers e) f) g) 0 1 2 3 4 5 6 7 Output (Brooms) 0 20 50 90 120 140 150 155 Marginal Product (Brooms) Total Cost ($) Average Total Cost ($) Marginal Cost ($) column for marginal cost. What pattern do you se Compare the column for marginal product with the column for marginal cost. Explain the relationship. Compare the column for average total cost with the column for marginal cost. Explain the relationship. What is Nimbus's efficient scale?
0 Labo capit total Labors ur al product $20 FC 5 15 1 10 1 1 1 20 1 Question 6 Mr-Ali Alawi recently set a shoe manufacturing outlet. He is planning for production demand, labor requirement, fixed cost, variable cost, the revenue. He come up with the following schedule. Help him to fill up the schedule. Initially he plans to use one machine. Total fixed cost per month is expected to be $1000. The unit cost of labor is estimated to be $20. 0 25 75 100 VC=# of 150 0 100 200 300 1000 total Cost(FC+VATotal cost/ C) 100 1000 120 1000 140 1000 160 Marginal cost(MC) 400 1000 180 ATotal Product Total Revenue Profit