Managerial economics help please! Coastal Productions has 3 fully equipped studi
ID: 1191481 • Letter: M
Question
Managerial economics help please!
Coastal Productions has 3 fully equipped studios with assorted types of video and audio equipment, so that the supply of capital is fixed at K = 3 capital units per month. The wage rate for workers is given to be w = $7,000 per month. The average price of its master audio and video master recordings is P = $125. The quantity of master recordings per month is given by Q.
What is the firm’s average product of labor when it hires 2 workers?
A. APL = 56.20
B. APL = 18.00
C. APL = 41.67
D. APL = 27.00
E. APL = 34.33
K*
L
D L
Q
MPL
APL
0
0
1
10
2
54
3
125
4
205
5
281
6
350
7
412
8
464
9
500
10
520
11
522
12
515
K*
L
D L
Q
MPL
APL
0
0
1
10
2
54
3
125
4
205
5
281
6
350
7
412
8
464
9
500
10
520
11
522
12
515
Explanation / Answer
option D, 54 divided by 2 = 27, is the right answer.
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