Question

Imagine you are the manager for Yummy's Chocolates.
A. In the short run, we are going to produce 200 units of milk chocolate Easter eggs for the upcoming
holiday and sell them for S5a unit. If we have 20 workers, what is our Average Product of Labor? To be
efficient what would our Marginal Product of Labor need to be?
A. In the long run, we are going to produce 500 units of milk chocolate Easter eggs with 25 workers who
will be paid $15. The cost of capital is $10, how many units of capital will we need?
A. If our ATC is $3.75 for 450 units of milk chocolate Easter eggs, $4.15 for 500 units, and $3.90 for 400
units, should Yummy's Chocolates be producing 500 units? Why or why not?

Answer 1

Answer:

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