Construct and plot on a single graph the marginal benefit and marginal cost schedules for home...
Question:
Construct and plot on a single graph the marginal benefit and marginal cost schedules for home repair tasks.
Marginal Cost:
Marginal cost refers to the additional cost that gets incurred from the production of one more unit of a good or from one more unit of something. On the other hand, marginal benefit is the additional benefit derived from one more unit of something.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerLet's assume hypothetical situation, to create the graph -
Assume that a home is getting repair that incurs cost to the owner of the home and also...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Marginal Cost: Definition, Equation & Formula
from
Chapter 3 / Lesson 12
254K
What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.
Related to this Question
- Dent Carr is in the auto repair business. His cost of producing 'y' cars is C(y) = 2y^2 + 100. A) Compute the following functions and design a graph to plot the following: i) AVC (y) ii) AC (y) iii) M
- Draw a production function that exhibits diminishing marginal product of labor. Draw the associated total-cost curve. (In both cases, be sure to label the axes.) Explain the shapes of the two curves you have drawn.
- Derive the individual and aggregate labor supply curve using relevant graphs, economics intuition, and mathematical equations.
- Bottom of Form Cost functions, a part of the definition of profit, are useful to gauge the performance of the business. Suppose an economist estimated the cost function of a single-product firm as C(Q) = 40 + 4Q + 4Q^2 + 4Q^3. Define and compute
- Bottom of Form Cost functions, a part of the definition of profit, are useful to gauge the performance of the business. Suppose an economist estimated the cost function of a single-product firm as C(Q) = 40 + 4Q + 4Q^2 + 4Q^3. Define and compute th
- Bottom of Form Cost functions, a part of the definition of profit, are useful to gauge the performance of the business. Suppose an economist estimated the cost function of a single-product firm as C(Q) = 40 + 4Q + 4Q^2 + 4Q^3. Define and compute the avera
- Draw a graph and provide an explanation to show that the production function Q = L0.5K0.5 has a diminishing marginal product of labor but has constant returns to scale.
- You are given the following data Cost C $ 6 , 000.00 w $50.00 per unit of labor r $50.00 per unit of capital These data are used to construct the isocost line C 1 in the diagram to the right. Suppos
- The fisherman has a fixed cost of $12 (his pole). The opportunity cost of his time is $6 per hour. Make a graph the fisherman's total-cost curve at the following quantities of fish: 0, 11, 20, 25, 28, and 30.
- Based on the chart below calculate the marginal product of labor (MPL) for the 50th hour worked. labor hours Total product(output) 48 550 49 575 50 590 Marginal product of labor for the 50th hour wor
- In the graph below, it is shown the firm's average product of labor and the marginal product of labor curves. The price of labor is $60 per unit. Given this, diminishing returns set in with the: a. 3rd unit of labor b. 6th unit of labor c. 10th unit of
- a. Complete the following cost schedule by computing average fixed cost and average variable cost. |Output|Total Cost|Average Fixed Cost|Average Variable Cost |0|$600| | |1|800| | |2|1,050| | |3|1,
- A firm uses labor (L) and machines (K) to produce some output. The cost of labor is $40 per unit and the cost of using a machine is $10. (a) Derive an equation for the isocost line. (b) Draw an isoco
- In the graph below, it is shown the firm's average product of labor and the marginal product of labor curves. The price of labor is $60 per unit. When the firm uses 4 units of labor, what is the average variable cost? a. $240 b. $124 c. $10 d. $24 e.
- Suppose Home has 300 units of labor. It can produce two goods, apples and bananas. In Home a worker can produce 3 apples or 5 bananas. a. Graph Home's PPF, with apples in the horizontal axis, b. What is the opportunity cost of apples? c. In the absence
- The cost to produce x units of wire is c =25x + 600, while the revenue is r = 40x. Find all intervals where the product will at least break even.
- Bernardo has fixed costs of production equal to $2,000 and his variable costs are $400 per worker. Use the data below to solve the following problems: A) Design the total cost curve in a graph over th
- The long-run average cost curve is the relationship between the lowest attainable average total cost and output, when plant size is [{Blank}] and labour is [{Blank}]. The long-run average cost curve is made up of the segments of individual average [{Blank
- The cost to produce x units of wire is c=55x+450, while the revenue is r=80x. Find all intervals where the product will at least break even.
- You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below. (Part A) What is the marginal product of the second worker? (Part B) What is the marginal revenue product (MRP) of the fourth worke
- Draw a production possibility frontier for the production of hamburgers and milkshakes at a hamburger restaurant (which faces increasing marginal opportunity costs). a. Indicate a point X on your diagram that is attainable but is inefficient. b. Describe
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the fixed cost of producing 10 units of output.
- The break-even quantity of units will be reduced in the following: a. Where the 2 alternative lines cross on a graph b. Qbc=FC/(r-v) c. Fixed costs are increased d. If the variable cost per unit is re
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the variable cost of producing 10 units of output.
- Provide a graph and an explanation to show that the production function Q = L0.5K0.5 has a diminishing marginal product of labor but has constant returns to scale.
- Draw total product and marginal revenue product diagrams to show how a fall in the price of output affects the employment of labor. Explain your diagrams
- You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below. [TABLE] (1.) What is the marginal product of the second worker? (2.) What is the marginal revenue product of the fourth worker? (3.
- Cost functions, a part of the definition of profit, are useful to gauge the performance of the business. Suppose an economist estimated that the cost function of a single-product firm as: C(Q) = 40 + 4Q + 4Q^2 + 4Q^3. Based on this information, determine
- A purely competitive firm faces the marginal product schedule shown in the table below. The price of the product is $25 and the wage rate is $300 per worker. Calculate the marginal revenue product and complete the table. [TABLE] The firm should hire: A. 1
- Unit of Labor Output Marginal Product Price MRP_1 Marginal Revenue Product MRP_2 Marginal Revenue Product 0 0 1 50 $20 2 90 $20 3 $20 $600 4 20 $20 5 $20 $200 6 155 $20 1. Provide the missing values in the first five columns of the table. Ignore the
- An economist estimated that the cost function of a single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3, where Q is the quantity. Calculate the fixed cost of producing 10 units of output.
- Compare the following alternatives using the Benefit/Cost Ratio method. Consider that the salvage value is affecting construction cost-rate 4% per year. | Alt.| Construction cost $ |Benefits $/yr |Sa
- Consider a firm that has just built a plant, which costs $1,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below. Number of Worker Hours Output Marginal Product
- A statistic called Gross Output (GO) sums together the value of economic activity taking place in each of the four stages of a productive economy, namely, a) planning, implementation, review, and wrap-up. b) addition, subtraction, multiplication, and div
- 1. Your printed circuit factory is running at the break-even point. If your fixed costs are $1,000,000 annually, your variable costs per PCA are $100 and your break-even revenue is $3,000,000 annually
- A firm uses labor (L) and machines (K) to produce some output. The cost of labor is $ 40 per unit and the cost of using a machine is $ 10. a) Derive an equation for the isocost line. b) Draw an isocos
- q = L0.6 K0.4 Graph a series of isoquants for the production function q = 10,15,20. Plot at least 5 points for each isoquant by assuring value for q and then a value for L and solving for the remaining value to get the needed level of q.
- The following data is a hypothetical short-run production function: |Hours of labor|Total Output|Marginal Product |0| _|_ |1|100|100 |2|_ |80 |3| 240| _ The production function illustrated in the table: a) Does not incur diminishing marginal returns beca
- The cost of hiring 6 units of labor is $120 per day, whereas hiring 7 units of labor is $130 per day for a firm. Determine the marginal cost of hiring the 7th labor unit.
- Consider the following table. What is the marginal cost of producing the fifth unit of output? | Quantity of Output | Fixed Cost | Variable Cost | 0 | $20| $0 | 1 | $20 | $10 | 2 | $20 | $40 | 3 | $20 | $80 | 4 | $20 | $130 | 5 | $20 | $200 | 6 | $2
- 5a. Graph the following data (5) Q 0 2 4 6 8 10 12 P 30 25 20 15 10 5 0 5b. Calculate the total revenue at each and every price. Show all work. Graph the total revenue curve. (10) 5c. Assume the e
- Using the following table for a hypothetical economy plot your production possibilities data on a graph. |Goods|A|B|C|D|E|F|G |Military|110|105|95|80|60|35|0 |Consumer|0|10|20|30|40|50|60 a. Suppose the economy is operating at point B. What is the opportu
- Construct the cost schedule using the data below for a firm operating in the short run. tabletheadtrthLabour/ththTotal output/ththMarginal product/th/tr/theadtbodytrtd rowspan="2"0/tdtd rowspan="2"0/tdtd/td/trtrtd rowspan="2"?/td/trtrtd rowspan="2"1/tdtd
- The table below presents the short-run production and costs at Fast Breakfast. Use the data in the table to answer the question below. Construct a graph of average total costs and marginal costs.
- Complete the table below. A worker costs $96 a day and the firm has fixed costs of $200. Round your answers to 1 decimal. What is the marginal product of labor of the 7th worker? Show your work.
- Complete the table below. A worker costs $96 a day and the firm has fixed costs of $200. Round your answers to 1 decimal. What is the marginal product of labor of the 3rd worker? Show your work.
- An economist estimated that the cost function of single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3, where Q is the quantity of output. Calculate the variable cost of producing 10 units of output.
- A firm has the production function y = x_1^{1/2}x_2. In the short run, it must use exactly 35 units of factor 2. The price of factor 1 is $105 per unit and the price of factor 2 is $3 per unit. What is the firm's short-run marginal cost function?
- Graphically derive a marginal product of labor function from a total product function for a firm that experiences an increasing rate of returns (faster than proportional) up to an output of 60 units o
- A warehouse can be set up in 1 of 5 ways. Below there are the different outputs the factory can produce in each setup. (a) What is the marginal opportunity cost of the second computer? (b) What is the marginal opportunity cost of the third computer? (c)
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the average fixed cost of producing 10 units of output.
- According to the table below; |Output|price |1|25 |2|23 |3|21 |4|19 |5|17 1. If the marginal cost were $21, the output would be [{Blank}]? 2. The marginal revenue that would be derived from the production of a second unit is [{Blank}]?
- Fill in the table below. Assume fixed costs is equal to $100 and labor is the only variable cost, paid $80 per employee.
- Under the household production model, the full cost of any activity equals? A. the cost of purchased inputs. B. the opportunity cost of time. C. the sum of the cost of purchased inputs and the opportunity cost of time. D. None of the above is correct.
- 1. Under the household production model, the full cost of any activity equals? A. the cost of purchased inputs. B. the opportunity cost of time. C. the sum of the cost of purchased inputs and the opportunity cost of time. D. None of the above is correct.
- A firm's production function is Q = min(L, 4K). The price of labor is w > 0 and the price of capital is r > 0. Derive the long-run total cost function. Draw the long-run expansion path. Label your graph clearly.
- Discuss the benefits and the cost of smooth production schedule.
- A straight line, drawn from the origin, is tangent to a short-run production function with only one input, labor. What does the graph look like?
- Use the graphs of the oligopolist below to answer each of the questions that follow: a. At what level of output will this firm operate? b . What is the MC at this level of output? c. What price wi
- If an additional unit of labor costs $150 and has an MPP of 50 units of output, the marginal cost is: A. $0.03 B. $0.30 C. $3.00 D. $5.00
- Sketch a graph of output in an industry versus the quantity of labor used in the industry if the industry is subject to diminishing returns of labor. In the specific-factors model, there are two indus
- For the production function q= K^0.2 L^0.3 use a lagrangian to solve for the cost minimizing input bundle to produce 100 units of output if v=10 and w=15. What is the marginal cost of production at th
- Complete the following table. The price of the good is $8 per unit. After completing the table, indicate how many units of labor you would hire if a) the Marginal Factor Cost = $600 per unit and b) th
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the average variable cost of producing 10 units of output.
- Consider the following table. A. Draw the total product curve. B. Find the marginal product (MP) and average product (AP) for each quantity of labor. Draw the graphs for MP and AP curves on the same plane. C. What can be said about the relationship betwee
- Consider the following cost function for producing two services: TC = 1000 + 10q_1 + 10q_2 a. Does the cost function exhibit economies of scale? If so, why? If not, why not? b. Does the cost funct
- Opportunity cost is evident in the production possibilities frontier (PPF) graph a. as you move from one point on the frontier to another point on the frontier. b. as you move from the origin to any inefficient point. c. as you move from one unattainable
- A firm has a production function of y = f(L, k) = ( sqrtL + sqrtk)^2 a) Find expressions for the marginal product of labor and capital (b) Find the cost function
- Consider the cost function C(x) = 7x^2 + 16x + 25. (in thousands of dollars.) a. What is the marginal cost (MC) at the production level x = 4? b. Use the MC at x = 4 to estimate the cost of producing 4.5 units. c. Let the revenue function be given by R(x)
- Daily production for Pot-Work, a flowerpot maker, varies with the number of workers employed, as shown in the table below: a) Fill in the table. b) In which employment range is marginal product rising? Falling and positive? Negative? c) On one graph, plot
- You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below. |Worker |Total Labor Cost |Output |Total Revenue |1|$100|50|$150 |2|$200|1
- Suppose that a firm's production function is given by q = 10 K^0.5 L^0.5, prices of labor and capital are, w=$10, and r=$40 respectively. Find and Plot the long-run AC and MC curves.
- A multiproduct firm's cost function is C(Q_1, Q_2) = 50 + 0.2Q_1^2 + 0.1Q_2^2. a. Are there economies of scope? Why? b. Are there cost complementarities in producing products 1 and 2? Why?
- Please graph the below supply function and shade in the producer surplus when the market price is $4(p*=$4) S(p)= (1/2)p
- An economist estimated that the cost function of a single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3, where Q is the quantity. Calculate the average variable cost of producing 10 units of output.
- You estimate a short-run production function to be Q = 16L^{0.8} which gives a Marginal Product of Labor function MPL = 0.8*16L^{-0.2} = 12.8/L^{0.2}. If the product made by the labor sells at a price of P=$8 per unit, then the Marginal Revenue Product of
- Fairweather Construction, Inc., has the following short-run total cost schedule: A) What is the firm's average fixed cost when Q = 5? B) What is the firm's average variable cost when Q = 4? C) What is
- This firm has a wage of $100 per worker, according to the following output schedule, the marginal cost when the firm is producing 15 units. Marginal cost is Labor Output 1 5 2 15 3 20 4 24
- Economies of scale are associated with? a. indivisible setup costs. b. diminishing marginal productivity. c. the short run. d. zero setup costs.
- Draw a production possibilities frontier if she has 280 budgeted to spend on the purchase of chips. Income = 280 Price of X = 1.00 Price of Y = 1.40 280/1.00 = 280 280/1.40 = 200
- Calculate the marginal product of the 4th. Lisa has a lawn-mowing business. Lisa hires students to mow the lawns. Her workers go from property to property in the summer, mowing lawns. The table below sets out Lisa's total product schedule (i.e. output ver
- After constructing a new factory, the cost of building the factory is a: a) variable cost. b) past cost. c) significant cost. d) taxable cost. e) sunk cost.
- A firm used Labor (L) and Machines (M) according to the production function The marginal products are The cost of Labor is $40 per unit and the cost of using Machine is $10. a. Suppose the Firm wants
- An economist estimated that the cost function of a single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3.
- The marginal physical product of labor employed in pizza production is 8 pizzas per hour. The price of pizzas is $10 per pie. The marginal revenue product of an hour of labor used in pizza production is: a. $8.00 b. $10.00 c. $2.00 d. $0.80 e. $80.00
- Suppose a firm's production function is given by f(k,l) = kl - 0.8k^2 - 0.2l^2 1. Fixing capital at k = 10, graph the marginal physical product of labour (MP_l), as a function of l. At what l does MP
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the total cost of producing 10 units of output.
- An economist estimated that the cost function of single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3, where Q is the quantity of output. Calculate the average fixed cost of producing 10 units of output.
- MARGINAL PRODUCT IS BETWEEN ROWS (32 IS BETWEEN ROW 3 AND 4) A) Does the production function exhibit diminishing marginal returns? B). If so, where do they "set in"? C) Intuitively, what will happe
- Determine the Benefit-Cost Ratio (B/C) of a project using the data below: Project life = 10 years Discount rate = 2% Project cost in year 0 = $100,000 Annual operating cost = $10,000 Annual reven
- Consider the cost function C(x)=7x^2+14x+22 (thousand dollars). Use the marginal cost at production level x = 3 to estimate the cost of producing 3.50 units.
- a. If you assign one worker per computer, what is the cost of inventorying a single item? b. What if you assign two workers per computer? What is the cost of inventorying a single item? c. What if you
- Using an AS/AD diagram, demonstrate graphically, and explain verbally, the short-run impact on the price level and real output of an increase in the labor productivity schedule.
- The supply of labor is given in the following table for Diamond Bakery, which is profit maximizing monopsonist. a. Using the table below, find the Total Cost of Labor and the Marginal Expense of Labor
- For the economy shown in Exhibit A, calculate the budget surplus (BS). Identify the structural and cyclical components of the BS with regard to the potential output level (Y ast = 2000).
- Hiring a unit of labour costs $10 while hiring a unit of capital costs $20. The marginal product of capital is equal to 200. A cost-minimizing manager will hire labour until its marginal product falls to: a) 50 b) 100 c) 200 d) 400
- Suppose a single firm has the marginal revenue product schedule for a particular type of labor given in the following table. ||Number of units of labor||MRP of labor |1|$16 |2|15 |3|14 |4|13 |5|12 |6|
- Construct the marginal product schedule for the production data in the following table.
- Using the table, determine the average fixed cost of producing 40 units. ||Q||FC||VC |0|500|0 |8|500|250 |17|500|500 |27|500|750 |40|500|1000 |54|500|1250 |66|500|1500 |76|500|1750 |84|500|2000 |91|500|2250 |96|500|2500 A. $12.00 B. $12.50 C. $18.52 D. $
- At L=100, K=149, the marginal product of labor is 2, and the marginal product of capital is 2. What is the marginal rate of technical substitution (labor measured on the horizontal axis)? The marginal
Explore our homework questions and answers library
Browse
by subject