Average product of labor and the marginal product of labor

Assignment Help Business Economics
Reference no: EM131099149

1) Futons Inc. produces futons using only two inputs – capital (wood, nails, and hammers) and labor (measured in worker hours) – with a technology characterized by the following function:q = 2ln(K + 3L)Futons Inc. spent $100 on 100 units of capital at the beginning of the period. They can neither purchase nor sell units of wood, nails, and hammers until the end of the period, but the material does not lose any value over time.

a) Solve for the average product of labor and the marginal product of labor.

b) Assuming that futon makers earn a wage of $9 per hour and the prevailing interest rate in the economy is 10 percent, solve for short run costs as a function of the numbers of futons produced.  

2) Suppose the recent recession led to a drop in wages such that the price of labor fell by 25 percent. Economists predict that this drop will be sustained in the long run. Furthermore, the user cost of capital has not changed, nor is it predicted to. How does this change in relative prices affect a firm’s long run expansion path? Please explain using both words (i.e., economic intuition) and a graph.

Reference no: EM131099149

Questions Cloud

What is your perspective on question of legalization of drug : Based on your reflections on your own beliefs, as well as arguments that are for and against legalization of marijuana, what is your perspective on the question of legalization of drugs, including marijuana? Be sure to support your position with ..
Find the approximate change in kinetic energy dk : A satellite of mass m is in circular orbit about the Earth. The radius of the orbit is r0 and the mass of the Earth is Me. Find the total mechanical energy of the satellite.
Question regarding the expected return on the portfolio : You own a portfolio that has $2600 invested in stock A and $3,400 invested in Stock B. If the expected returns on these stocks are 11 percent and 17 percent, respectively, what is the expected return on the portfolio?
Bank cost of preferred stock : Fifteenth Bank has an issue of 7% preferred stock with a $100 par value that just sold for $109 per share. What is the bank's cost of preferred stock? (Show your work and round your answer to two decimal places)
Average product of labor and the marginal product of labor : Futons Inc. produces futons using only two inputs – capital (wood, nails, and hammers) and labor (measured in worker hours) – with a technology characterized by the following function:q = 2ln(K + 3L)Futons Inc. spent $100 on 100 units of capital at t..
A predictive translator from the translation scheme : a) Construct a translation scheme to enter the type of each identifier into the symbol table. as in Example 5.3
Find the equation of motion for each mass : Find the equation of motion for each mass. (b) Show that the equations of motion can be solved in terms of the new dependent variables y1 = x1 + x2 and y2 = x1 - x2.
Translation scheme that simulates the syntax-directed : Rewrite the underlying grammar of Exercise 5.12 so that it groups the sub expressions of ::IE to the right and the sub expressions of + to the left.
Extend the syntax-directed definition : The sernantics of expressions are as in C. That is. b: =c is an expression that assigns the value of c to b; the r-value of this expression is the same as that of c. Furthermore. a: = (b: =0) assigns the value of c to b and then to a.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Budget constraint- find the best affordable bundle

Jim sees commuting by bus and T as perfect substitutes (U = T + B), that is, he would exchange one commute by bus for one commute by T. The price of a bus ticket is $1.50 and the price of a T ticket is $2.00. Jim has $6.00 to spend on commuting. (a) ..

  Determine the average time customer spends in the system

Suppose we know that the average number of customers present in a queuing system is 10 and the average number of customers waiting in line is 4. Given that the average number of arrivals entering the system per hour is 20, determine the average time ..

  Investing for dummies book at barnes and noble

Indicate whether each of the following is counted in this year’s GDP: You bought a new Wii at GameStop last year and resold it on eBay this year. You purchase an “Investing for Dummies” book at Barnes and Noble. You purchase a historic home using the..

  Price of product and quantity of the product demanded

Which of the following established the inverse relationship between the price of a product and the quantity of the product demanded?

  Child labor might improve conditions for families

Assume that labor demand is inelastic enough such that there are two equilibria. Explain how a complete and perfectly enforced ban on child labor might improve conditions for families according to this model.

  Products is related to the state of the economy

The demand for MICHTEC's products is related to the state of the economy.

  What are the loggers hoping to achieve

Suppose the logging industry forms a union that requires longer apprenticeships and charges high fees to its members. Discuss the reasons why loggers might place these stipulations on union members. What are the loggers hoping to achieve?

  What else might or might not change that affects profit

To increase a company’s performance, a manager suggests that the company needs to increase the value of its product to customers. Describe three ways in which this advice might be incorrect (Hint: Think about what else might or might not change that ..

  What are the equilibrium wage and employment

In a particular industry, labor supply is ES=20+w and labor demand is E D=60-4w , where E is the employment level and w is the hourly wage. What are the equilibrium wage and employment if the labor market is competitive?

  Shortage in the market for product when

There is a shortage in the market for a product when.

  Qmirk labs is a pharmaceutical company that currently

q.mirk labs is a pharmaceutical company that currently enjoys a patent monopoly in europe canada and the united states

  What are the firm marginal and average revenue product

Suppose that the price of the firm’s product is $20. What are the firm’s marginal and average revenue product functions? What is the firm’s short-run demand function for input Z.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd