Quiz5 Problems - Practice problems for Quiz 5 (Held on...

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Practice problems for Quiz 5 (Held on Monday, Nov. 30): “Review Questions” of Ch. 7: Nos.1-2 “Problems” in Chapter 7: no. 1 Extra Problems to do: 1. Define the concepts of MPL, APL, and total product of labor. Why does the MPL fall as output increases? 2. Which factors/forces increase the MPL? 3. Consider the production (per day) and labor employment of a shoe maker. Price of a shoe is $10 and wage per day for a worker is $100. L Q VMPL VAPL Labor Cost Rent 1 1 3 2 2 5 3 3 6 4 4 6 5 5 5 6 6 3 7 7 0 8 7 6 9 8 1 a. Fill in the blanks. b. Find the optimum level of employment of labor when the firm holds private property rights. How did you arrive at your answer? (write down
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the rule of labor employment and explain how the firm chooses this level of employment). 4. Suppose the output of oysters per hour from a public oyster bed is given by the following production function, where L represents the labor input and TP represents total product, or output, in oysters. L
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This note was uploaded on 02/06/2010 for the course ECONOMICS 200 taught by Professor Stiban,f during the Winter '10 term at University of Warsaw.

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Quiz5 Problems - Practice problems for Quiz 5 (Held on...

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