PS 5 Sol - UNIVERSITY OF WISCONSIN Economics 101 Spring...

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UNIVERSITY OF WISCONSIN Economics 101 – Spring 2007 Problem Set 4 1. Kelso Fruity Frozen Yogurt is a small shop that sells cups of frozen yogurt in Madison. Kelso owns four frozen-yogurt machines. His other input is labor input.(workers he employs.) a). Last month, he tried to estimate his daily production function when he varies the number of workers employed but keeps the number of machines fixed. However, he lost some of the data by accident. He knows you are studying Econ 101 so asks you to recover the lost data in the below table. Quantity of Labor (Workers) Total Quantity of frozen yogurt (cups) Average production of frozen yogurt Marginal production of frozen yogurt 0 0 - - 1 100 100 100 2 240 120 140 3 420 140 180 4 560 140 140 5 660 132 100 6 720 120 60 7 742 106 22 8 720 90 -22 Total-Average-Marginal-Product Curve -100 0 100 200 300 400 500 600 700 800 02468 1 0 1 2 Labor Production Tot Q AveQ MQ b). Draw the total product curve. Put the quantity of labor on the horizontal axis and the quantity of frozen yogurt on the vertical axis.
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c). Draw the average product curve and the marginal product curve in the same graph.
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This note was uploaded on 07/13/2008 for the course ECON 101 taught by Professor Hansen during the Spring '07 term at University of Wisconsin.

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PS 5 Sol - UNIVERSITY OF WISCONSIN Economics 101 Spring...

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