Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Output of Iron from Fairytale Mine (Kilograms per Day) Number of Minecarts (Capital Inputs) Number of Magical Dwarf Miners (Labor Inputs) 0 2 3 5
Output of Iron from Fairytale Mine (Kilograms per Day) Number of Minecarts (Capital Inputs) Number of Magical Dwarf Miners (Labor Inputs) 0 2 3 5 6 7 0 0 45 90 135 180 225 270 315 0 135 210 220 215 200 170 100 2 0 250 525 580 575 535 500 450 w 0 250 570 610 660 615 550 500 0 250 590 705 780 650 515 490 0 250 590 760 645 550 400 375 Fairytale Mine employs magical dwarf miners to mine iron. It can also use minecarts as capital to make the miners more productive. The table above represents the production function for Fairytale Mine. Suppose that magical dwarf miners get lonely easily and will only work at Fairytale Mine if there is at least one other magical dwarf miner working there. Thus, when Fairytale Mine has zero magical dwarf miners working for it, it must hire two magical dwarf miners if it wants to hire its first one. In this specific case, if Fairytale Mine has one minecart, what is the marginal physical product of the first unit of labor? 210 kg of iron per day 135 kg of iron per day 105 kg of iron per day O O kg of iron per day
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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