Problem 1:
|
Number Of Workers
|
Output
|
|
0
|
0
|
|
1
|
50
|
|
2
|
110
|
|
3
|
300
|
|
4
|
450
|
|
5
|
590
|
|
6
|
665
|
|
7
|
700
|
|
8
|
725
|
|
9
|
710
|
|
10
|
705
|
The table above shows the weekly relationship between output and number of workers for a factory with a fixed size of plant. Using Excel,
a. Calculate the marginal product of labor.
b. Calculate the average product of labor.
c. At what point do diminishing returns set in?
Problem 2:
Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information and using Excel, fill in the missing information 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
|
--
|
|
|
20,000
|
--
|
--
|
--
|
|
50
|
400
|
|
|
|
20,250
|
|
|
|
|
100
|
900
|
|
|
|
20,500
|
|
|
|
|
150
|
1300
|
|
|
|
20,750
|
|
|
|
|
200
|
1600
|
|
|
|
21,000
|
|
|
|
|
250
|
1800
|
|
|
|
21,250
|
|
|
|
|
300
|
1900
|
|
|
|
21,500
|
|
|
|
|
350
|
1950
|
|
|
|
21,750
|
|
|
|