Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

A production function shows the

10/11/2021 Client: muhammad11 Deadline: 2 Day

ECON 102_Quiz 5_ Study Guide with Answers

5

A firm’s product price multiplied by the total number of items sold is called

total revenue

A firm’s total revenue is equal to price multiplied by quantity.

Economic profit

is never larger than accounting profit

Economic profit is total revenue less total opportunity costs. Total opportunity costs include both explicit and implicit costs.

The extra output that the last worker hired adds to total production is called the

marginal product of labor

The marginal product of labor is the additional output produced by the last worker hired.

The short run is a situation such that

at least one input to production is fixed in quantity.

In the short run at least one input is fixed. In the long run all inputs may vary.

Labor

Output

1

0

2

8

3

14

4

18

5

20

Consider the table above. What is the average product when 4 workers are hired?

4.5

The average product of labor is calculated as Q/L.

Consider the graph above. The slope of the production function reflects

increasing marginal cost

The slope of the production function is marginal product. When marginal product falls, marginal cost rises.

Consider the figure above. Which graph represents a production function?

A

Graph (a) shows a production function. If output is on the vertical axis and labor is on the horizontal axis, then output expands as additional labor is hired – but at a diminishing rate. This is according to the law of diminishing marginal productivity.

At low levels of output, average total cost is high due to high levels of

average fixed cost

Recall that ATC = AFC + AVC. ATC is highest at low levels of output since AFC is highest at low levels of output. AFC continually decreases as output expands.

Labor

Output

Variable Cost

Fixed Cost

Total Cost

0

0

12

1

10

5

2

18

22

3

24

15

4

28

20

32

Consider the table above. What is the average fixed cost at 24 units of output?

.50$

AFC = FC/Q = 12/24

Economies of scale can result from

increased specialization

Firms can capitalize on economies of scale by allowing workers to specialize in specific tasks. This tends to increase productivity and reduce costs.

Bob used to earn $40,000 per year in his job as a nurse, but he quit in order to open his own pizza shop. Bob used $10,000 from his own savings account and borrowed $200,000 more from his bank. The interest rate is 4%. In Bob’s first year of business he earned $80,000 in revenue and the cost of ingredients (flour, tomato sauce, cheese, etc.) was $67,000. For his first year of business, Bob’s accounting profit was _______, and his economic profit was ______.

$5,000; - $35,400

Remember the difference between accounting profit and economic profit is in the way costs are calculated. Accounting profit takes into account explicit costs only, whereas economic profit considers both explicit and implicit costs.

A firm’s product price multiplied by the total number of items sold is called

total revenue

A firm’s total revenue is equal to price multiplied by quantity.

Labor

Output

0

0

1

8

2

14

3

18

4

20

Consider the table above. What is the Marginal product of the 3rd worker?

4

The marginal product of labor is calculated as the change in Q divided by the change in L.

Labor

Output

Variable Cost

Fixed Cost

Total Cost

0

0

12

1

10

5

2

18

22

3

24

15

4

28

20

32

Consider the table above. What is the marginal product of the second worker?

8

Marginal product is calculated as the change in output divided by the change in labor.

The production function shows the relationship between

the inputs to production and the quantity of output produced.

The production function shows the relationship between the quantity of inputs used in production (for example labor) and the quantity of output produced.

If a firm wants to take advantage of economies of scale, they might

convert the production process into an “assembly line”.

Specialization and an assembly line production process will enable a firm to capitalize on economies of scale.

Which of the graphs above show marginal productivity first rising and then declining?

(b) & (d)

In the short run, as more of the variable input is hired, marginal product may at first increase, but it will eventually decline.

Which of the costs below do not vary when a firm changes its level of production?

fixed cost

Fixed costs are costs that do not vary as output varies.

Consider the figure above. Which curve is AFC?

D

AFC is downward sloping.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Assignments Hut
Essay & Assignment Help
Assignment Helper
Top Class Results
Assignment Hut
Accounting & Finance Specialist
Writer Writer Name Offer Chat
Assignments Hut

ONLINE

Assignments Hut

I am an experienced researcher here with master education. After reading your posting, I feel, you need an expert research writer to complete your project.Thank You

$38 Chat With Writer
Essay & Assignment Help

ONLINE

Essay & Assignment Help

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$40 Chat With Writer
Assignment Helper

ONLINE

Assignment Helper

I am an academic and research writer with having an MBA degree in business and finance. I have written many business reports on several topics and am well aware of all academic referencing styles.

$30 Chat With Writer
Top Class Results

ONLINE

Top Class Results

As per my knowledge I can assist you in writing a perfect Planning, Marketing Research, Business Pitches, Business Proposals, Business Feasibility Reports and Content within your given deadline and budget.

$29 Chat With Writer
Assignment Hut

ONLINE

Assignment Hut

This project is my strength and I can fulfill your requirements properly within your given deadline. I always give plagiarism-free work to my clients at very competitive prices.

$21 Chat With Writer
Accounting & Finance Specialist

ONLINE

Accounting & Finance Specialist

I have read your project description carefully and you will get plagiarism free writing according to your requirements. Thank You

$16 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Article review - Computer aided design software is used primarily by ________ - Anthology of world scriptures van voorst pdf - Cream of tartar for msg poisoning - Example of inductive reasoning in nursing - 4 plc questions graphic organizer - Business Finance Homework 2 - Round to 1 sf - Sgs test request form - Cash flow - Bernard of clairvaux crusades - Learning to read by frances ellen watkins harper answer key - Themes in so long a letter by mariama ba pdf - Benzil to benzoin mechanism - Vce biology unit 1 and 2 practice exams - What are five recommended steps to make ethical decisions - The electric field inside a conductor mastering physics - Anz merchant eftpos rolls order - Sources of error in gravimetric analysis - Forensic science chapter 5 pollen and spore examination review answers - Leadership multiple choice quiz - Integral of e 2x sin3x - Wileyplus accounting homework answers - 495 week 2 replies - APPLIED REFLECTIVE QUESTION SHORT RESPONSES - Variable rate overtime frito lay - What is expanded academic asap - Discussion Responses - Weaknesses of fenty beauty - Quotes from deadly unna - Engleberg and wynn working in groups revel edition 7th - Blade element theory example - Week 6 Discussion - 4 wire resistance measurement - Parkdale v puxu summary - Project 1—Victims’ Rights Legislation Critique - Etta kralovec the end of homework - Assess the attractiveness of the wine industry using porter's forces - Appealing class 4 adf - How many electrons does calcium ion have - Edith hamilton mythology quizlet - Instant and affordable Research proposal writing service. - Nicomachean ethics translated by terence irwin pdf - Office 365 leeds trinity university - North or south who killed reconstruction answers - Discussion(NCM) - Hive receiver wiring diagram - Practical Connection Assignment - Potential employer - Avista oxide 1kg jet black cement colouring - Traditional income statement managerial accounting - 7 pillars of wisdom - National horticulture board karnataka - Sex linked recessive punnett square - Concept analysis paper topics - David i steinberg law group llc - Nymphaea pygmaea x helvola - Benz micro out of business - Reply 1 Tof N - Stitt feld handy negotiation simulations - Lanley homes great eccleston - Hope is the thing with feathers literary devices - Hydrolysis of ammonium chloride - Lament poem gillian clarke - How do glow sticks work - Mr smith keeps track of his students homework completion - Longitude and latitude of mount pinatubo - Quiznos hiring age - Fish philosophy video download - Why did the schlieffen plan fail - Kwintessential co uk resources country profiles html - Lishman unit maudsley hospital - Similar minds personality test - Marhaba blackburn just eat - Virgin trains to dundee - A simple pendulum 1.00 m in length - What is 40 percent of 55 - Anglican diocese of melbourne insurance - Dui ou lung wealth and success talisman - Following our conversation earlier today - Whistleblowing in publicly traded companies within the last 12 months - Working with employees - portfolio assignment - Centrelink indigenous call centre number - Partner k950 fuel mix ratio - What language(s) must be used to display a bare-minimum web page - Alternate form reliability definition - Interpreting weather station models lab answer key - Medication competency assessment answers - The coupon rate is best defined as the: - Blindspot hidden biases chapter summaries - Medical sociology questions and answers - How much is abstudy - My Portuguese lab, Pearson - Discussion - Pigeon racing club list uk - Resurrecting sex resolving sexual problems and rejuvenating your relationship - What is the epic hero cycle - Daisy pool covers 525 micron ultradome pool blanket - +971561686603 Abortion pills in Dubai/Abu Dhabi-mifepristone & misoprostol in DUBAI - Flowchart exercises for students with answers