Business, 20.12.2019 05:31 piper64bsj
Afirm produces output with capital and labor. suppose currently the marginal product of labor is 20 and the marginal product of capital is 2. each unity of labor costs $8 and each unity of capital costs $1. is the firm minimizing the cost of production? explain.
let mpk be the marginal product of capital, mpl be the marginal product of labor, r be the proce of capital, w be the cost of labor, and mrts be the marginal rate of technical substitution.
the firm is:
a. not minimizing the cost of production because mrts> mpk/mpl
b. not minimizing the cost of production because mpk/r
c. minimizing the cost of production because mrts = mpk/mpl
d. minimizing the cost of production because mpk/r = mpl/w
e. minimizing the cost of production because mpk/r
Answers: 1
Another question on Business
Business, 22.06.2019 00:30
How did lani lazzari show her investors she was a good investment? (site 1)
Answers: 3
Business, 22.06.2019 17:40
Aproduct has a demand of 4000 units per year. ordering cost is $20, and holding cost is $4 per unit per year. the cost-minimizing solution for this product is to order: ? a. 200 units per order. b. all 4000 units at one time. c. every 20 days. d. 10 times per year. e. none of the above
Answers: 3
Business, 22.06.2019 17:40
To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b.the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.
Answers: 3
You know the right answer?
Afirm produces output with capital and labor. suppose currently the marginal product of labor is 20...
Questions
Biology, 14.08.2020 01:01
Mathematics, 14.08.2020 01:01
