Consider the following short-run production function for a firm for question 7. Labor 1 2 3...
Consider the following short-run production function for a firm for question 7.
| Labor | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Total Product | 5 | 12 | ? | 23 | 27 | ? | 32 | 33 |
| average Product | 5 | ? | 6 | 5.75 | 5.4 | ? | 4.57 | 4.12 |
| marginal product | 5 | 7 | 6 | ? | 4 | 3 | ? | 1 |
7. Suppose the wage rate is $30 per worker. What is the average variable cost if the firm produces 18 units of output?
a. $2
b. $4
c. $5
d. $10
e. There is not enough information to answer the question
Homework Answers
e. There is not enough information to answer the question
Explanation: Average variable cost = total variable cost/ no. of units.
Here, we cannot calculate the total variable cost without knowing what is the fixed cost and which all are variable inputs.
Add Answer to:
Consider the following short-run production function for a firm
for question 7.
Labor
1
2
3...
consider the following short-run production function for a firm: show work &n...
consider the following short-run production function for a firm: show work Labor 1 2 3 4 5 6 7 8 Total product 5 12 ? 23 27 ? 32 33 Average product 5 ? 6 5.75 5.4 5 ? 4.12 Marginal product 5 7 6 ? 4 3 ? 1 The missing total product figures are 18 and 24 15 and 25 19 and 25 18 and 30 None of the above
Question 2. Consider a perfectly competitive firm maximizing profits in the short run. It uses on...
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1. Consider a firm which produces according to the following production function by using labor and...
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