Purchase Solution

total, average, and marginal product curves

Not what you're looking for?

Ask Custom Question

Please help with the following problem.

a. Given the following chart and information fill in the missing values. Please write on a separate sheet. Note that r = $50 and w = $100. Use a price of $5.50.
(see attached file for chart)
b. Which input is variable? Fixed? How do you know?
c. How many of the variable input should the firm use to maximize profits? Please verify. Note that in order to do this you need to use costs.
d. What are the max profits the firm can earn if it sells the Q for $5.50 at the market?
e. Please graph both the total average and marginal product curves over the ranges of Q provided. Explain the shape of the curves and how the marginal curve is related to the total curve.

Attachments
Purchase this Solution
Solution Summary

This solution helps with problems involving inputs, profits and marginal product curves.

Solution Preview

See the attached file. Thanks.

a. Given the following chart and information fill in the missing values. Please write on a separate sheet. Note that r = $50 and w = $100. Use a price of $5.50.
K Labor Total Product (Q) Marginal Product of Labor Average product of Labor Average product of ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Economics: Cost Curves

    •Draw the graphs of the marginal product (MP) and the average product (AP). •To learn how to plot the data in Excel, see https://www.youtube.com/watch?v=B3U9tDcoNeI •Where do the AP and MP curve cross?

  • Production curve

    395002 Use excel to draw an average product (AP) and marginal product (MP) curves in the same space Please help with the following problem.

  • Production Exercise

    How does the law of diminishing marginal productivity affect the shape of short-run cost curves? 6. Where does the marginal cost curve intersect the average total cost and average variable cost curves?

  • Diminishing marginal utility implies

    E) average product equals marginal product and marginal product is falling. lineline 13) In the short run, the firm's product curves show A) AP is at its minimum when MP = AP. B) TP is at its maximum when MP = O.

  • Solving a Firm's Costs

    Based on this information, fill in the table below: Number of Worker Hours Output Marginal Product Fixed Cost Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost 0 0 -- 20,000 0 20,000 -- -- -- 50 400 400 20,000

  • Short-run marginal cost curves

    102136 Short-run marginal cost curves 1. If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax?

  • Calculating various production costs

    Calculate the marginal and average variable product of each unit of labor input. Hint: plot your Units of labor and Units of Output vertically. b. Calculate total, average total, average variable, and marginal costs. c.

  • Al’s Bicycle Town: Production and Costs

    Table 3 Total Product (TP) Average variable cost (AVC) Average total cost (ATC) Marginal cost (MC) 0 na na na

  • Total revenue, average revenue and graph

    axes, plot the total-revenue, the average-revenue, and the marginal-revenue schedules of part (a) (c) With reference to your figure in part (b), explain the relationship among the total, average, and marginal revenue curves.

View More Related Solutions