Explore BrainMass

Explore BrainMass

    Microeconomics Example Problems

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Problem: At the Amarillo Piano Company, the average product of labor equals 10, regardless of how much labor is used.

    a) What is the marginal product of the first unit of labor?
    b) What is the marginal product of the eightieth unit of labor?
    c) By how much will output increase if labor is increased by 100 units?
    d) By how much will output fall if labor is reduced by 50 units?
    e) Does this case seem realistic? Why or why not?

    (Please show all your work)

    © BrainMass Inc. brainmass.com March 4, 2021, 6:12 pm ad1c9bdddf
    https://brainmass.com/economics/labour-economics/microeconomics-example-problems-34629

    Solution Preview

    1) Production 3
    At the Amarillo Piano Company, the average product of labor equals 10, regardless of how much labor is used.
    APL = 10 = Q/L which gives Q = 10L

    a) What is the marginal product of the first unit of labor?
    The marginal product for the first ...

    Solution Summary

    This solution provides steps necessary to solve the microeconomics problems.

    $2.49

    ADVERTISEMENT