How many extra units are produced

Assignment Help Microeconomics
Reference no: EM13894633

a) The production curve will look like in the upper part of Figure S.3.1.

b) The average product of labor is the total quantity of units produced divided by number of working hours. The marginal product of labor is how many extra units are produced if we add one more unit of labor:

APL = q/L

MPL = Δq/ΔL

MPL corresponds to the slope of the production function in the graph. APL corresponds to the slope from the origin to a certain point on the production curve.

c) The shapes of MPL and APL are given in the lower graph.

269_abcd.png

The most characteristic points on the production curve are points A, B, and C. The
corresponding points below are labeled a, b, and c.

In point A, the slope of the curve is the same as the slope of a line from the origin to point A. Consequently, MPL and APL have the same value there. In the corresponding point a, they intersect each other. Also note that APL slopes downwards on both sides of point a.

In point B, the slope of the production curve is zero. Consequently, MPL intersects the X- axis at point b.

In point C the production curve reaches its highest slope. Both to the left and to the right
of C the curve is less steep. Consequently, MPL reaches its maximum at c.

Reference no: EM13894633

Defin mid point formula

Points on Demand Curve Price(Per ounce) Quantity (Ounces per show)Compute the price elasticity between point D to point E and G to H. Instructions: Enter your response

The rate of growth in the productivity of labor

The rate of growth in the productivity of capital is 1 percent, the rate of growth of capital is 2 percent, the rate of growth of labor is 1 percent, and the rate of growth in

Explain fluctuations in the level of economic activity

Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrasting the economic f

What is the equilibrium quantity

a) Assuming no externalities, what is the equilibrium quantity? b) If the product above creates external benefits for consumers of $10 per unit, what would be the optimal quan

What is strategy is most desirable from economic efficiency

Firms have tried a number of different strategies to reduce the negative effects of competition on their ability to earn economic profits. What is the strategy is most desir

How much economic profit do you expect that roberts company

How much economic profit do you expect that Robert's company will make in the first year? Do you expect this economic profit level to continue in subsequent years? Why or why

What would you love to change about your current position

What would you LOVE TO CHANGE about your current position? After synthesizing the Are you a Professional exercise, please explain your areas of strength and areas that you a

What does characteristics of a good brand name include

Emil Flores won't buy any coffee except "Blue Mountain"--a relatively expensive type that few stores sell. He used to have to drive about 10 miles out of his way to buy it a

Reviews

Write a Review

 
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