Production Decisions

 

 

 

Cakes by Monica (a bakery under the umbrella of the Café Brulé restaurant) in Vermillion, SD makes cupcakes for customers to purchase both in the store and in bulk orders for birthday parties and weddings.

Suppose in the short-run, a bakery like Cakes by Monica has a fixed amount of capital but can hire college students from a local college easily to increase production as needed. A production schedule is provided for you where Q is dozens of cupcakes.

a) Using the schedule provided, calculate the marginal product of labor when K = 3.

b) Using your calculations, for which workers are there increasing, decreasing, and negative marginal returns to labor?

c) Suppose this bakery decides to add another unit of capital in the long-run. Find the marginal product of the 4th unit of capital and the marginal product of labor when K = 4.

d) Create a graph of the marginal product of labor for K=3 and K=4.

e) Using your graph and the data, how does the addition of another unit of capital affect the productivity of labor?

 

Sample Solution

human body, it will help synthetic intelligence to develop concepts and an understanding of the world that is similar to the way our own minds work.
Some companies are developing human body modifications and human enhancement in the purpose for medical use, today we see body prosthetics on humans being used by their brain signals to control their movement but in the near future I think we will begin to see non-medically body modifications as prosthetics to the body parts we already have, combining technology in a way that make us more robots.
But making synthetic intelligence look and behave like us humans, while we at the same time make ourselves look like synthetic intelligence combining us with prosthetic body parts, isn’t that making us almost the same? We can both think, we have the same body shape, we are both part robot, and we are in a sense both human. When do we reach the point where we are more machine than human? And can we identify synths in a point where they are just as humans as us. I think that humans will make major modifications on our body in the next short amount of time and when we reach the point where the differences between synths and humans are almost gone, I think that what will determine a human being from an synth will be that it was born as a human and not created from technology. But if you create babies from both “races” which both end at the same point in life where they are truly identical I wouldn’t say that they were different! I would say that they would be the same kind of being, they can both think, have feelings, and behave as each other. It would be to say that white people are better than black people! And it would be the same idea because they are truly identical. We would just have created the alien we have been looking for the hole time or created a new comparison to a human being with a new kind of evolution.

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