Solved

Fill in the Missing Values in the Following Table AComplete the Marginal Product Column in Table 8-4

Question 148

Essay

Fill in the missing values in the following table.Draw one graph showing how total output increases with the quantity of workers hired,and another graph showing the marginal product of labor and the average product of labor.
 Quantity of  Workers  Total  Output  Marginal  Product of  Labor  Average  Product of  Labor 0012002500390041,15051,300\begin{array} { | l | r | l | l | } \hline \begin{array} { l } \text { Quantity of } \\\text { Workers }\end{array} & \begin{array} { l } \text { Total } \\\text { Output }\end{array} & \begin{array} { l } \text { Marginal } \\\text { Product of } \\\text { Labor }\end{array} & \begin{array} { l } \text { Average } \\\text { Product of } \\\text { Labor }\end{array} \\\hline 0 & 0 & & \\\hline 1 & 200 & & \\\hline 2 & 500 & & \\\hline 3 & 900 & & \\\hline 4 & 1,150 & & \\\hline 5 & 1,300 & & \\\hline\end{array}
a.Complete the Marginal Product column in Table 8-4.
b.Characterize the production function,i.e.,does the production function display increasing marginal returns,diminishing marginal returns,etc.
c.Using the data above,graph Juan's marginal product curve.Be sure to label the horizontal and vertical axes.Is your graph consistent with your answer to part (b)? Explain.
d.Juan uses the following inputs for fishing-a small wooden boat (B),a fishing pole (P)and of course,his labor (L).Treating the boat and the fishing pole as fixed inputs and using the data above,graph Juan's Total Product of Labor curve.Be sure to label the horizontal and vertical axes.
e.(Extra Credit)The opportunity cost of Juan's time is $8 per hour.If Juan receives $2 per pound for his fish,what is the optimal number of hours he should spend fishing? Explain how you arrived at your answer.Hint: Recall marginal benefit and marginal cost analysis.

Correct Answer:

verifed

Verified

\[\begin{array} { | l | r | c | c | }
\...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents