ESMN 9 11-1. The table aside and graph below show a production function of a pri
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Question
ESMN 9 11-1. The table aside and graph below show a production function of a printer making firm 90 1.1 No firm obtains more output than its 91 1.2 Does it relate to the short-run or long-run? Average function allows product+Marginal input because plant size is fixed and it applies to a single firm 93 94 11-2. Panel(b) in the next page shows a total physical product curve, which 95 represents the maximum feasible outcome when we add successive equal-sized units 96 of labor while holding all other inputs constant. 97, panel (B) peaks at seven workers/week and then starts to go down. 98 2.1 What is the sian of the marginal product when the firm hires the eighth unit Note, In the long-run, everything can vary per weok)per week) per wook 11.00 of labor to produce the computer, positive or negative? 10.00 100 22 The marginal (physical) productt is the physical output that is due to the addition of one more unit of a 101 102 103 11-3. Let's examine the marginal product of labor 104 Marginal product increases for the first 2 units of labor, but it falls down from the third person 05 is to work in force. 106 3.1 The Law of Marginal Product 07 As successive equal increases in a variable factor of production are added to fixed factors 08 109 10 111 3.2 The Relationship between Average and Marginal Costs 112 Ex: A team of 10 football players with an average weight of 230 pounds of production, there will be a point beyond which the extra, or marginal, product that can be attributed to each additional unit of the variable factor of production will decline : This is called The Law of s0 Marginal Product 40 What is the total weight of the team? 114 An eleventh player is recruited, whose weight is 340 pounds. Now, what is the marginal gain of the eleventh member? What is the total weight of the team? What is the average weight of the team? pounds 118 Does the average weight of the team increase or decrease after the eleventh recruitmenta Session4Explanation / Answer
1.1 No firm obtains more output than its production function allows because there are limited resources in the economy.
1.2 It relates to the short run production function , because because plant size is fixed .
2.1 The sign of the maginal product is negative at the eighth unit because after 7th unit total product starts declining.
2.2 The marginal physical product is the physical output that is due to the addition of one more unit of labor in the production.
3.1 As marginal product of labor starts declining, this is called the law of diminishing marginal product.
3.2 If total players= 10, and average weight = 230 pounds . Then total weight of team = (players)(average weight)
= (10)(230) = 2300 pounds .
Now, an eleventh player is recruited , whose weight is 340 pounds .
The marginal gain of the eleventh player = 340 pounds
Total weight of the team = (2300 +340) = 2640 pounds.
Average weight of the team = 2640/11 = 240 pounds.
Average weight of team increase after the eleventh recruitment.
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