Firm Measures Productivity Costs And Profits Labor 0 1 2 3 4 Total Product Tp Fixed Cost Tfc Variable Cost Tvc 1 (111.11 KiB) Viewed 26 times
Firm Measures Productivity Costs And Profits Labor 0 1 2 3 4 Total Product Tp Fixed Cost Tfc Variable Cost Tvc 2 (50.58 KiB) Viewed 26 times
Firm Measures Productivity Costs And Profits Labor 0 1 2 3 4 Total Product Tp Fixed Cost Tfc Variable Cost Tvc 3 (50.58 KiB) Viewed 26 times
Firm Measures: Productivity, Costs, and Profits Labor 0 1 2 3 4 Total Product (TP) Fixed Cost (TFC) Variable Cost (TVC) 0 $8000 $ 0 16000 $8000 $ 72.000 50000 $8000 $ 92.000 60000 $8000 $172,000 64000 $8000 $312,000 c. e. a. Solve for average product (AP) in each row, except for where labor = 0. b. Solve for marginal product (MP) in each row, except for where labor = 0. c. Which worker(s) are in the region of diminishing marginal returns? d. Which worker(s) are in the region of increasing marginal returns? Of the regions from parts c and d, state in which region(s) the firm will choose to produce. f. Specialization and division of labor are observed in which one of the three regions? How do specialization and division of labor lead to marginal product moving in this direction? g. What is the three part relationship between the MP and the AP? h. Solve for total cost (TC) in each row. i. Graph the TFC and TC curves for this firm. Make sure to label the axes. j. Solve for the average total cost (ATC) in each row, except for where labor=0. k. Solve for the marginal cost (MC) in each row, except for where labor = 0. 1. While the TVC and TC curves are parallel, why are the AVC and ATC curves not parallel? m. Why are the productivity and cost, as seen by the relationship between the AVC and AP as well as the relationship between the MC and MP, inversely related? While it is because as one increases, the other decreases, please explain the inverse relationship that exists between worker productivity and cost, in general. n. When deciding whether to make a change, like start a new job or business, why does one look at the economic profit instead of the accounting profit?
EQUATIONS Marginal Utility (MU) = Change in Total Utility (TU) / Change in Output Marginal Product (MP) = Change in Total Product (TP) / Change in Labor Average Product (AP) = Total Product (TP) / Labor Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC) Average Fixed Cost (AFC) = Total Fixed Cost (TFC)/Total Product (TP) Average Variable Cost (AVC)= Total Variable Cost (TVC)/Total Product (TP) Average Total Cost (ATC) = Total Cost (TC)/ Total Product (TP) = Average Fixed Cost (AFC) + Average Variable Cost (AVC) Marginal Cost (MC)= Change in Total Cost (TC) / Change in Total Product (TP) = Change in Total Variable Cost (TVC)/ Change in Total Product (TP)
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