ECO 304K Study Guide - Quiz Guide: Tomato Paste, Marginal Product, Demand Curve

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ECO 304K Full Course Notes

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Eco 304k fall 2015: jack runs a dorm cleaning service. He works 8 hours, and pays for cleaning supplies. He could spend the 8 hours working for /hour. c. d. e. he does not have any economic profit: the following table relates a sandwich shop"s output to its labor input. Answers: labor = 1, labor = 2, labor = 3, labor = 4, labor = 5, which of a pizza restaurant"s costs is most likely to be fixed? a. Number of workers c. cheese and tomato paste d. cardboard pizza boxes e. rent on its building: a firm has fixed costs of and total variable costs of at 200 units of output. c. d. e. : todd"s t-shirt town makes t-shirts using capital and labor, both of which cost per hour to rent or hire.

Related Questions

Use the following table to answer questions 1 - 3.

Number of Workers	Output	Marginal Product of Labor	Value of Marginal Product of Labor	Wage	Marginal Profit
0	0
1	100		$1000	$400	$500
2		80	$800	$400
3		60		$400	$100
4	280		$400	$400
5		20		$400

1. What is the market price of the final good?

A. $5

B. $6

C. $8

D. $10

2. If the firm hires two workers, the two workers together produce

A. 80 units

B. 100 units

C. 180 units

D. 200 units

3. To maximize its profits, how many workers will the firm hire?

A. 2

B. 3

C. 4

D. 5

tanwalrus510

Refer to the table below and answer questions A through D.

Labour Output per hour

0 0

1 6

2 11

3 15

4 18

5 19

A. What is the marginal product of labor as the firm moves from using two workers to using three workers?

B. What is the marginal product of labor as the firm moves from using four workers to using five workers?

C. Suppose the price of output is $4 per unit. What is the value of the marginal product of labor as the firm moves from using three workers to using four workers?

D. If this profit-maximizing firm sells its output in a competitive market for $4 per unit and hires labor in a competitive market for $7/hour, then how many workers should this firm hire?

rosewildebeest590

The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and the market price for the firm's product is $2 per unit.

Units of Labor	Units of Output
3	370
4	490
5	570
6	600
7	620

1. How much does the fifth unit of labor add to the firm's total revenue?

A. $160.
B. $80.
C. $60.
D. $40.
E. $10.

2. If the wage rate is $200, how many units of labor will the firm employ?
A. 3.
B. 4.
C. 5.
D. 6.
E. 0, the firm shuts down.

3. If the wage rate is $200, the firm should
A. Shut down because the average revenue product is $200, which is less than the marginal revenue product.
B. Shut down because the average revenue product is $228, which is greater than the wage rate.
C. Produce because the average revenue product is $200, which is less than the marginal revenue product.
D. Produce because the average revenue product is $245, which is greater than the wage rate.

4. If the market price for the firm's production increases to $5, how many units of labor will the firm employ at a wage rate of $200?
A. 0, the firm shuts down.
B. 4.
C. 5.
D. 6.
E. 7.

greenpug879

ECO 304K Study Guide - Quiz Guide: Tomato Paste, Marginal Product, Demand Curve

ECO 304K Full Course Notes

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