Looking at marginal productivity-how could adding additional workers decrease ma
ID: 1844934 • Letter: L
Question
Looking at marginal productivity-how could adding additional workers decrease marginal physical product? Include data in support.
(if your score on test one is 80% and one test two is it 90%, what is the marginal change in scores)
2. Fully explain with examples “marginal cost”.
3. Fully explain why fixed does not cause total cost to increase but variable cost does? Include examples.
4. Fully explain why does average fixed cost decrease with an increase in output? Why does average variable cost increase with an increase in output? Provide data to support your answer.
5. If you work for yourself and do not pay yourself wages how does this effect economic and accounting costs?
Remember to include the questions and find support for your answers in the textbook, using in-text citations and a reference list following the MLA style. The MLA style can be found in Course Content
Explanation / Answer
a)
b) In economics, marginal cost is the change in the total cost that arises when the quantity produced is incremented by one unit. That is, it is the cost of producing one more unit of a good. In general terms, marginal cost at each level of production includes any additional costs required to produce the next unit.
c) GoSound produces portable music players. Each unit produced requires a digital chip that costs $11. At right is a table that reveals rising chip costs with increases in production. For example, $1,650,000 is spent when 150,000 units are produced (150,000 X $11). but in case of fixed cost,
Assume that GoSound leases the manufacturing facility where the portable music players are assembled. Rent is $1,200,000 no matter the level of production. The rent is said to be a “fixed” cost, because total rent will not change as output rises and falls. The table at right reveals the factory rent incurred at different levels of production and the resulting “per unit” rent amount. The following graphs show how the fixed costper unit will decline with increases in production. This attribute of fixed costs is important to consider in assessing the scalability of a business.
c) average of fixed cost will be fixed and average of variable cost changes . for examples a product fixed cost is 30 and 4 no of products and variable cost may be 25,35 ,28,35
d) if you work for yourself you willnot be paid that will help you to reduce the debits in your account.
a) marginal product change =( 80-90/90)*100 = 11.11%
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