Suppose that an economy produces 1400 units of output, employing 20 units of input, and the price of the input is $30 per unit. The level of productivity in this economy is? a. 70 b. 60 c. 40 d. 20
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Suppose that an economy produces 1400 units of output, employing 20 units of input, and the price of the input is $30 per unit. The level of productivity in this economy is?
a. 70
b. 60
c. 40
d. 20
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- The table provides information about the production function for Lindsay's Farm, which uses labor and land to produce its produce. The price of labor is $50 per worker per week and the price of land is $20 per acre. Quantity of Land (acres) 10 10 10 Quantity of Labor (workers) 0 1 2 3 5 Quantity of Produce (bushels) 0 50 100 Table 55-4: Lindsay's Farm. 170 190 When Lindsay increases output from 50 units of produce to 100 units of produce, her marginal cost per unit is equal to:5 Supposing that a single consumer works for a firm, the quantity of labor input for the firm, N, is identical to the quantity of hours worked by the consumer, h - l. Graph the relationship between output produced, Y on the vertical axis and leisure hours of the consumer, l, on the horizontal axis, which is implied by the production function of the firm. (In Chapter 5, we refer to this relationship as the production possibilities frontier.) What is the slope of the curve you have graphed? PLEASE DO NOT COPY OTHER PEOPLE'S WORK AND GRAPHYou run a factory that uses pottery wheels to make pots. You can hire anywhere between 1 and 3 skilled artisans (workers), and you can rent 1 or 2 pottery wheels (machines). Pots sell for $125 each. The total product of your factory is shown in the following table. Number of Machines (Capital, K) 1 Pottery wheels are 2 1 8 10 Number of Workers (Labor, L) 2 11 14 3 13 17 Suppose you rent one machine and hire one worker. You would be willing to pay $ to hire a 2nd worker. (Consider the value of the marginal product of labor.) Suppose you rent one machine and hire one worker. You would be willing to pay a rental rate of up to $ Suppose the wage is $350. If you have one pottery wheel, the number of workers you would want to hire is to acquire a 2nd machine. (Consider the value of the marginal product of capital.)
- In a certain country, output is produced using only labor and land. The production function is Y=AXªL1-a where Y is output, X is the quantity of land, and Lis the quantity of labor. Factors of production are paid their marginal products. In this country there are 100 acres of land and 30 workers. Land earns a rent of $4,000 per acre per year. Workers are paid a wage of $10 per hour, and work 2,000 hours per year. What is the value of a?3. Duane breeds parrots for a living. He has discovered that the production function for parrot chicks (Q) is: Q=K0.5 p0.5 where K is capital (for example nest boxes, cages and the like) and F is parrot food. The price of K is $8 and the price of F is $2. (b) Does this production function exhibit constant, increasing or decreasing returns to scale? Provide a graph of the function using Excel.Consider two farms, A and B. The input use and output are given in the following table. The wage = $80 per day and rental price of the machines = $100 per day Farm Labour(L) Physical capital(K) Output(Q) Q/L Q/K TFP A 2 2 200 ? ? ? B 4 1 200 ? ? ? Which farm is more productive according to the productivity measures? Which of the three measures is the most informative measure of agricultural productivity? Why?
- 4. Arieľ's T-shirt company hires labor at a rate of $8 per hour and rents capital (sewing machines) at a cost of $128 per machine per day. Throughout this question, you can think of Ariel renting fractions of sewing machines if necessary. Her production function is given by q = 6L%K$ where q measures the number of T-shirts produced each day, L measures the total number of hours worked by all employees in a day and K measures the number of sewing machines. (a) Using the Lagrangian technique, find the cost-minimizing combination of labor and capital for the production of q T-shirts per day. (b) Write down an equation for Ariel's long-run expansion path. (c) Find Ariel's long-run total, average, and marginal cost as a function of the number of T-shirts she produces each day. (d) Sketch Arieľ's long-run total expansion path in a diagram. Sketch at least two isoquants with the associated isocost lines. Using your diagram, determine how Ariel's long-run expansion path will shift if the cost…Determine whether each of the following would increase or decrease the opportunity costs for mothers who decide not to work outside the home. Explain your answers. Higher levels of education for women Higher unemployment rates for women Higher average pay levels for women Lower demand for labor in industries that traditionally employ women Many households supplement their food budget by cultivating small vegetable gardens. Explain how each of the following might influence this kind of household production: Both husband and wife are professionals who earn high salaries. The household is located in a city rather than in a rural area. The household is located in a region where there is a high sales tax on food. The household is located in a region that has a high property tax rate.Question 13 5 pts For the production function y = 4x1+ 3x2, which of the two inputs is more productive when x1 is 10 and x2 is 10? X1 X 2 neither; for this situation, they have equal marginal products cannot tell from the above information Question 14 5 pts Given the production function y = x1 1/3 x,1/3, what is the marginal physical product of x2 when x1 is 5 and x2 is 5? O 0.75 37 0.19 O 1.11
- An economy can produce leather using labor and capital and wheat using labor and land. The total supply of labor is 50 units. Given the supply of capital, the outputs of the two goods depend on labor input as follows: Labor Input to Leatheroutput of LeatherLabor Input of WheatOutput of Wheat 27 5 19.8 10 38.5 10 31.2 15 47.3 15 42.3 20 56 20 52.1 25 65.7 25 60.6 30 74.5 30 69 35 82.4 35 77.4 40 88.2 40 85.4 45 94.1 45 93.9 50 100 50 100 a. Graph the production functions for leather and wheat. b. Graph the production possibility frontier. What will happen if more labor is employed?There are two factors of production, X and Y. They are being used to produce a fixed amount of output called A. If the amount of output, A is held constant, and the isoquants are convex, would the price of X going down always mean less of Y is used? Explain why or why not by explaining through the use of a graph.Suppose there are two goods beverage and pizza and two inputs land, T, and labor, L. Given atb=5011, atp=993, alb=2451, alp=2004,T=5333, and L=4981. What is the amount of pizza at the point of intersection between land and labor constraints ? (Answer should have two decimal places).
