Henry can purchase mixers (capital) for his bakery, where he makes loaves of bread. The productivity and revenue generat
Posted: Sun Jul 03, 2022 6:57 am
- Henry Can Purchase Mixers Capital For His Bakery Where He Makes Loaves Of Bread The Productivity And Revenue Generat 1 (159.29 KiB) Viewed 13 times
3mixers
5 mixers
4 mixers
Henry can purchase mixers (capital) for his bakery, where he makes loaves of bread. The productivity and revenue generated by additional mixers is presented in the table below. Assume this is a perfectly competitive market. Henry's Bakery and Revenues Capital Total Product (mixers) (loaves of bread) 0 1 2 3 4 5 6 7 11 20 28 34 38 40 41 Marginal Product (loaves of bread) 11 9 8 6 4 2 1 Price (dollars) $5 5 5 5 5 5 5 5 Total Revenue (dollars) $0 55 100 140 170 190 200 205 Marginal Revenue Product (dollars) $55 45 40 30 20 10 5 a. Graph Henry's demand for capital based on the information in the table above. Draw the marginal resource cost (MRC) curve if the price for a mixer is $30. Instructions: Use the tools provided "Demand for Capital" and "MRC" to plot each line point by point (7 points total for each line). Plot your first point for each at a quantity of one mixer.
MRP or Cost (dollars) $60 $50 $40 $30 $20 $10 0 Henry's Demand for Capital 1 2 3 4 5 6 Quantity of Capital (mixers) 7 8 Tools Demand for C MRC O