Question: both problem #1 and problem #2 PROBLEM #1 A small company produces specialty chocolates. The company currently owns a building, with two fully equipped kitchens,

both problem #1 and problem #2
both problem #1 and problem #2 PROBLEM #1 A small
PROBLEM #1 A small company produces specialty chocolates. The company currently owns a building, with two fully equipped kitchens, where it produces the chocolates (measured in boxes of two dozen). After carefully monitoring production over several weeks, the owner determines that the daily production function of chocolate is represented by the following table. Labor Total Product Marginal Product Average Product (# of Workers) (Output, Boxes) Of Labor of Labor 0 0 1 2 14 32 56 3 4 72 80 6 84 7 86 a a b. Does this table represent a short-run or a long-run production functie? Find the marginal product and average product, using the information above, for each level of labor (complete the table) Compare the marginal product of the second third, fourth, and fifth workers. With which worker do diminishing marginal returns set in? 0 c. PROBLEM #2 The specialty chocolatier in Problem #1 is considering adding a third fully equipped kitchen to their production process. Suppose that after further analysis, the owner concludes that the average total cost curve will be generally higher as a result of this expansion. Based on this information, determine whether expanding the operation from two to three kitchens results in disconomies of scale or diminishing marginal retums. Briefly explain your

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