Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
In the table from problem #2, what is the level of employment at which diminishing returns begin? What happens to the marginal product of labor
- In the table from problem #2, what is the level of employment at which diminishing returns begin? What happens to the marginal product of labor and to marginal cost at this employment level?
- Using the table from problem #2, answer the following questions:
- Marginal cost equals minimum AVC between what two employment levels?
- Marginal cost equals minimum ATC between what two employment levels?
L K TP AP MP TVC TFC TC AFC AVC ATC MC 0 20 0 -- - 0 80 80 -- -- -- -- 1 20 10 10 10 6 80 86 80 6 8.6 0.6 2 20 30 15 20 12 80 92 40 6 3.066667 0.3 3 20 60 20 30 18 80 98 26.66667 6 1.633333 0.2 4 20 100 25 40 24 80 104 20 6 1.04 0.15 5 20 150 30 50 30 80 110 16 6 0.733333 0.12 6 20 210 35 60 36 80 116 13.33333 6 0.552381 0.1 7 20 280 40 70 42 80 122 11.42857 6 0.435714 0.085714 8 20 360 45 80 48 80 128 10 6 0.355556 0.075 9 20 450 50 90 54 80 134 8.888889 6 0.297778 0.066667 10 20 550 55 100 60 80 140 8 6 0.254545 0.06 11 20 640 58.18182 90 66 80 146 7.272727 6 0.228125 0.066667 12 20 720 60 80 72 80 152 6.666667 6 0.211111 0.075 13 20 790 60.76923 70 78 80 158 6.153846 6 0.2 0.085714 14 20 850 60.71429 60 84 80 164 5.714286 6 0.192941 0.1 15 20 900 60 50 90 80 170 5.333333 6 0.188889 0.12 16 20 940 58.75 40 96 80 176 5 6 0.187234 0.15 17 20 970 57.05882 30 102 80 182 4.705882 6 0.187629 0.2 18 20 990 55 20 108 80 188 4.444444 6 0.189899 0.3 19 20 1000 52.63158 10 114 80 194 4.210526 6 0.194 0.6
- Marginal cost equals minimum AVC between what two employment levels?
- Marginal cost equals minimum ATC between what two employment levels?
L | K | TP | AP | MP | TVC | TFC | TC | AFC | AVC | ATC | MC |
0 | 20 | 0 | -- | - | 0 | 80 | 80 | -- | -- | -- | -- |
1 | 20 | 10 | 10 | 10 | 6 | 80 | 86 | 80 | 6 | 8.6 | 0.6 |
2 | 20 | 30 | 15 | 20 | 12 | 80 | 92 | 40 | 6 | 3.066667 | 0.3 |
3 | 20 | 60 | 20 | 30 | 18 | 80 | 98 | 26.66667 | 6 | 1.633333 | 0.2 |
4 | 20 | 100 | 25 | 40 | 24 | 80 | 104 | 20 | 6 | 1.04 | 0.15 |
5 | 20 | 150 | 30 | 50 | 30 | 80 | 110 | 16 | 6 | 0.733333 | 0.12 |
6 | 20 | 210 | 35 | 60 | 36 | 80 | 116 | 13.33333 | 6 | 0.552381 | 0.1 |
7 | 20 | 280 | 40 | 70 | 42 | 80 | 122 | 11.42857 | 6 | 0.435714 | 0.085714 |
8 | 20 | 360 | 45 | 80 | 48 | 80 | 128 | 10 | 6 | 0.355556 | 0.075 |
9 | 20 | 450 | 50 | 90 | 54 | 80 | 134 | 8.888889 | 6 | 0.297778 | 0.066667 |
10 | 20 | 550 | 55 | 100 | 60 | 80 | 140 | 8 | 6 | 0.254545 | 0.06 |
11 | 20 | 640 | 58.18182 | 90 | 66 | 80 | 146 | 7.272727 | 6 | 0.228125 | 0.066667 |
12 | 20 | 720 | 60 | 80 | 72 | 80 | 152 | 6.666667 | 6 | 0.211111 | 0.075 |
13 | 20 | 790 | 60.76923 | 70 | 78 | 80 | 158 | 6.153846 | 6 | 0.2 | 0.085714 |
14 | 20 | 850 | 60.71429 | 60 | 84 | 80 | 164 | 5.714286 | 6 | 0.192941 | 0.1 |
15 | 20 | 900 | 60 | 50 | 90 | 80 | 170 | 5.333333 | 6 | 0.188889 | 0.12 |
16 | 20 | 940 | 58.75 | 40 | 96 | 80 | 176 | 5 | 6 | 0.187234 | 0.15 |
17 | 20 | 970 | 57.05882 | 30 | 102 | 80 | 182 | 4.705882 | 6 | 0.187629 | 0.2 |
18 | 20 | 990 | 55 | 20 | 108 | 80 | 188 | 4.444444 | 6 | 0.189899 | 0.3 |
19 | 20 | 1000 | 52.63158 | 10 | 114 | 80 | 194 | 4.210526 | 6 | 0.194 | 0.6 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started