Author Question: Consider a firm that has just built a plant, which cost 1,000. Each worker costs 5.00 per hour. ... (Read 84 times)

jenna1 · **on:** Jul 1, 2018

Consider a firm that has just built a plant, which cost 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 Fixed Cost Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost
0 0 -- -- --
50 400
100 900
150 1300
200 1600
250 1800
300 1900
350 1950

Question 2

Which of the following is most likely to cause the demand curve in the capital market to shift leftward?

A) Government borrows to finance a war.
B) All firms project higher future revenue streams for all of their projects.
C) All firms project lower future revenue streams for all of their projects.
D) Government institutes a high tax on savings.

SAUXC · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

Number of Worker Hours Output Marginal Product Fixed Cost Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost
0 0 -- 1,000 0 1,000 -- -- --
50 200 4 1,000 250 1,250 1.25 1.25 6.25
100 700 10 1,000 500 1,500 0.50 0.7143 2.1429
150 1400 14 1,000 750 1,750 0.3571 0.5357 1.25
200 1650 5 1,000 1000 2,000 1 0.6061 1.2121
250 1800 3 1,000 1250 2,250 1.6667 0.6944 1.25
300 1900 2 1,000 1500 2,500 2.50 0.7895 1.3158
350 1975 1.5 1,000 1750 2,750 3.3333 0.8861 1.3924

Answer to Question 2

C