8. micro - Maya Cohen ID 066370065 Exercise #8: the...

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Maya Cohen ID 066370065 Exercise #8: the production Function 1. Average product of labor: Labor input per year Output in tons of wheat class A field Output in tons of wheat class B field 1 1,100 800 2 875 750 3 700 700 4 575 650 5 480 600 6 480 1/3 500 7 350 ~ 414.286 Marginal product of labor: Labor input per year Output in tons of wheat class A field Output in tons of wheat class B field 1 1,100 800 2 650 700 3 350 600 4 200 500 5 100 400 6 50 0 7 0 -100 2. Workers Class A fields Class B fields 1,100 650 350 200 10 0 5 0 0 800 700 600 500 400 0 -100 180 100W 80W 420 100W 100W 100W 100W 20W 840 100W 100W 100W 40W 100W 100W 100W 100W 100W a. 180 workers -First we need to allocate the workers into the fields, were they would bring higher productivity. The first worker would go to the Class A field producing a marginal profit of 1,100 as oppose to 800 in the B field, and so would the other 99 people after him (100 fields). The 101 worker would go to the Class B field producing a marginal profit of 800 as the first worker over there, as oppose to producing 650 as the second worker at the A fields.
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Therefore the maximum annual output when we have 180 workers is: 1,100X100+ 80X800= 174,000. 420 workers
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8. micro - Maya Cohen ID 066370065 Exercise #8: the...

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