JayZee is the new sensation in the fashion industry, his cloth line is being appreciated and liked by the masses. Due to increased demand he decided to hire more labour (variable factor) while it is not possible for him to extend his warehouse size. If he hires you as an expert to ensure maximum profits with following information, take the best decisions, solve all the parts and their subparts as well. Total Product Units of Capital Units of Labour 0 5 0 100 5 1 240 5 2 400 5 3 500 5 4 560 5 5 570 5 6 570 5 7 520 5 8 460 5 9 1. Find: AP, MP and TR (show calculation) 2. Find: i. Identify the three stages of production. ii. Construct the curves of TP, MP and AP. iii. Suggest how many labour should JayZee hire and why.
JayZee is the new sensation in the fashion industry, his cloth line is being appreciated and liked by the masses. Due to increased demand he decided to hire more labour (variable factor) while it is not possible for him to extend his warehouse size. If he hires you as an expert to ensure maximum profits with following information, take the best decisions, solve all the parts and their subparts as well. Total Product Units of Capital Units of Labour 0 5 0 100 5 1 240 5 2 400 5 3 500 5 4 560 5 5 570 5 6 570 5 7 520 5 8 460 5 9 1. Find: AP, MP and TR (show calculation) 2. Find: i. Identify the three stages of production. ii. Construct the curves of TP, MP and AP. iii. Suggest how many labour should JayZee hire and why.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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Question
JayZee is the new sensation in the fashion industry, his cloth line is being appreciated and liked by the masses. Due to increased demand he decided to hire more labour (variable factor) while it is not possible for him to extend his warehouse size. If he hires you as an expert to ensure maximum profits with following information, take the best decisions, solve all the parts and their subparts as well.
|
Total Product |
Units of Capital |
Units of Labour |
|
0 |
5 |
0 |
|
100 |
5 |
1 |
|
240 |
5 |
2 |
|
400 |
5 |
3 |
|
500 |
5 |
4 |
|
560 |
5 |
5 |
|
570 |
5 |
6 |
|
570 |
5 |
7 |
|
520 |
5 |
8 |
|
460 |
5 |
9 |
1. Find: AP, MP and TR (show calculation)
2. Find:
i. Identify the three stages of production.
ii. Construct the
iii. Suggest how many labour should JayZee hire and why.
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