Macroeconomics Question

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Sheet1

number of trench-digging machines
laborers 0 1 2 3 4 5 6 7 8
0 0 0 0 0 0 0 0 0 0
1 2,000 8,000 8,010 8,010 8,010 8,010 8,010 8,010 8,010
2 5,000 12,000 16,000 16,020 16,020 16,020 16,020 16,020 16,020
3 8,500 16,500 24,000 31,000 31,050 31,050 31,050 31,050 31,050
4 11,000 20,000 27,000 35,000 43,000 43,100 43,100 43,100 43,100
5 12,000 23,000 29,500 40,000 49,000 56,000 56,150 56,150 56,150
6 12,800 25,000 31,900 44,000 54,000 63,000 71,000 71,200 71,200
7 13,000 26,000 33,000 47,000 58,000 67,500 77,000 85,000 85,250
8 12,500 26,500 33,600 48,000 60,000 70,000 79,000 87,500 95,000
Square feet of irrigation installed per day M=3 & L=8 M=4& L=5 best method
TC = 1025 800
M=0 M=2 MRP
MP l .1* MP
L=1 2,000 8,010 801
L=2 3,000 7,990 799
L=3 3,500 8,000 800
L=4 2,500 3,000 300
L=5 1,000 2,500 250
L=6 800 2,400 240
L=7 200 1,100 110
L=8 -500 600 60
M = 1 2 3 4 5 6 7 8
MP when L=6 12,200 6,900 12,100 10,000 9,000 8,000 200 0
MRP = 0.1 * MP $ 1,220.00 $ 690.00 $ 1,210.00 $ 1,000.00 $ 900.00 $ 800.00 $ 20.00 $ - 0

Sheet2

number of trench-digging machines
laborors 0 1 2 3 4 5 6 7 8
0 0 0 0 0 0 0 0 0 0
1 2,000 8,000 8,010 8,010 8,010 8,010 8,010 8,010 8,010
2 5,000 12,000 16,000 16,020 16,020 16,020 16,020 16,020 16,020
3 8,500 16,500 24,000 31,000 31,050 31,050 31,050 31,050 31,050
4 11,000 20,000 27,000 35,000 43,000 43,100 43,100 43,100 43,100
5 12,000 23,000 29,500 40,000 49,000 56,000 56,150 56,150 56,150
6 12,800 25,000 31,900 44,000 54,000 63,000 71,000 71,200 71,200
7 13,000 26,000 33,000 47,000 58,000 67,500 77,000 85,000 85,250
8 12,500 26,500 33,600 48,000 60,000 70,000 79,000 87,500 95,000
Square feet of irrigation installed per day
short run production function m=4
labor output MP FC VC TC TR (P=1) ∏ (profit) AMRP(margin=.1) TR(P=.92) ∏ ARMP(margin=0.02)
0 0 300 0 300 0 -300 ------- 0 -300 0
1 8,010 8,010 300 7309 7609 8,010 401 801 7369.2 -239.8 160.2
2 16,020 8,010 300 14618 14918 16,020 1102 801 14738.4 -179.6 160.2
3 31,050 15,030 300 28245 28545 31,050 2505 1,503 28566 21 300.6
4 43,000 11,950 300 39100 39400 43,000 3600 1,195 39560 160 239
5 49,000 6,000 300 44600 44900 49,000 4100 600 45080 180 120
6 54,000 5,000 300 49200 49500 54,000 4500 500 49680 180 100
7 58,000 4,000 300 52900 53200 58,000 4800 400 53360 160 80
8 60,000 2,000 300 54800 55100 60,000 4900 200 55200 100 40

Sheet3