Alex fiani corporation produces egg cartons which are sold

Reference no: EM13391536

Alex Fiani Corporation produces egg cartons that are sold to egg distributors. Alex Fiani Corporation has estimated this production function for its egg carton division:

Q = 25L0.6K0.4,

where Q = output measured in one thousand carton lots, L = labor measured in person hours, and K = capital measured in machine hours. Alex currently pays a wage of $10 per hour and considers the relevant rental price for capital to be $25 per hour.

Derive

a. Derive MPL

b. Derive MPK

c. Solve for MRTS using mpl and mpk

d. Determine the optimal capital labor ratio that Acme should use in the egg carton division

Reference no: EM13391536

Questions Cloud

Find out the output rate which maximizes profit or : a competitive firm sells its product at a price of .10 per unit. its total and marginal cost functions aretc 5 0.5q

For the upcoming weeks breakfast meeting you told your : you plan to hold a weekly breakfast meeting with your team of strategic planners to practice assessing an industry. for

Make an equally weighted portfolio of five computer : create an equally weighted portfolio of five computer software stocks. is such a portfolio a diversified portfolio?

How is porters competitive strategy used by the : business reuqest1. for this question please review and research the us airline industry statistics revenues profits

Alex fiani corporation produces egg cartons which are sold : alex fiani corporation produces egg cartons that are sold to egg distributors. alex fiani corporation has estimated

The price elasticity of demand coefficient : the price elasticity of demand coefficient measuresa. buyer responsiveness to price changes.b. the extent to which a

Which of the two options should patricia pursue if she : patricia is researching venues for a restaurant business. she is evaluating three major attributes that she considers

The uniform law issued in 1984 by the committee on : the uniform law issued in 1984 by the committee on corporate laws of the american bar association that regulates the

Cost of producing 600 small fiberglass sailboats per year : the cost of producing 600 small fiberglass sailboats per year and the cost of producing sails and fittings necessary to

User Account

All Pages