ECO 304K - HW 3 - (25 Points total Remember to type the...

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HW #3 Economics 304K: Principles of Microeconomics Prof. Meg Ledyard Due Tuesday October 23, 2007 (25 Points total) Remember to type the homework except for charts and graphs. In order to get full credit, you must show all of your work. Homework is due in class on the date listed above. Question 1: (8 points) Suppose that you own a firm that hires workers to make Doritos. You know the following relationship between the number of workers and output: # of Workers Total Output of Doritos in one hour 0 0 1 5 0 0 2 9 5 0 3 1350 4 1 7 0 0 5 2 0 0 0 6 2 2 5 0 a. (2 points) Calculate the Marginal Product of labor for this firm. b. (2 points) Draw the production function for this firm. It does not have to be exactly to scale, but it should have the correct shape. Why does it have this shape? c. (2 points) Suppose the Doritos’ factory costs 500 to operate, and labor costs 50 per hour. Calculate the total cost for each of the above number of workers. d.
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ECO 304K - HW 3 - (25 Points total Remember to type the...

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