8.1 The Long Run: No Fixed Factors Ck 10 of 24 (10 complete) 8 co X 8.1 Study Exercise 11 (Algo) Question Help The table to the right shows the marginal product of capital and labour for each Production of several methods of producing 1,000 kilograms of flour per day. Method MP K MP a. As we move from A to G, are the production methods becoming more or less 20 capital or labour intensive? 18 16 14 15 X A. It becomes less labour intensive since the MP, rises. 12 18 10 O B. It becomes more labour intensive since the MP, rises. 21 8 24 O C. It becomes less capital intensive since the MPk rises. O D. It becomes more capital intensive since the MP * falls. KE. Both A and D. b. If capital costs $6.00 per unit and labour costs $3.00 per unit, production method that minimizes the cost of producing 1.000 kg of flour is B c. For each of the methods that are not cost minimizing (with the factor prices from part (b)), describe how the firm would have to adjust its use of capital and labour to minimize costs. For combinations C - G, the firm should use more labour d. Now suppose that the price of capital falls to $4.60 per unit and the price of labour rises to $5.00 per unit. The method that now approximately minimizes cost is DX) 7.4 Study Exercise 19 (Algo) The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of labour is $50 per unit per day and the fixed cost of the capital is $1500 per day. If Click the icon to view the table. Complete the last four columns of the table Units of Labour Total Output (per day) [per day) TFC TVC TC MC AFC ANC ATC 10 100 $ 15.00 $ 5.00 $ 20 00 $ 2 60 20 300 $ 5 00 $ 3.33 $ 833 $ 1.25 700 $ 2 14 $214 $429 $ 1.09 40 1160 $ 1.29 $ 1.72 $302 $367 50 1300 $ 1.15 $ 197 $308 $ 833 1360 $1.10 $221 $331 $ 10 00 70 1410 $ 1.00 5248 5365 (Round your responses to the nearest cent) b. Assuming that labour is only hired in increments of 10 units, what is this firm's capacity level of output? 1160 per day . Assuming that labour is only hired in increments of 10 units, at what level of labour employed per day does the firm encounter diminishing marginal productivity of labour? 40 units per day Question is complete. Tap on the red indicators to spo incorrect answers. All parts showing