Determine is the company minimizing cost

Reference no: EM13206447

Suppose you are the production manager for Widgets, Inc. Your job is to produce a fixed amount of output at the lowest cost possible. When you take over the position, you find that the price paid for a unit of labor is $20 (W = $20), and the price paid for a unit of capital is $50 (R = $50). You also discover that with the current mix of capital (K) and labor (L), the marginal product of labor is 10 (MPL = 10) and the marginal product of capital is 20 (MPK = 20). Is your company minimizing cost? If not, how could you change inputs to do so?

Reference no: EM13206447

Questions Cloud

Compute the plate height for a long column : Calculate the plate height (H) for a 16 cm-long column with a stationary phase particle diameter

Calculate the optimal money growth rate needed for the fed : Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate

State the structures and names of three alkenes : Explain, why you used sulfuric acid in the experiment, not HCl. (3) Give the structures and names (including description of stereochemistry) of three alkenes produced in dehydration of 3-methyl-3-pentanol.

Explain why a koan might help a person during meditation : Explain why non-Buddhists might choose to take up the practice of meditation and explain why a koan might help a person during meditation

Determine is the company minimizing cost : Suppose you are the production manager for Widgets, Inc. Your job is to produce a fixed amount of output at the lowest cost possible. When you take over the position, you find that the price paid for a unit of labor is $20 (W = $20)

Explain the initial ph of the buffer solution : A student tried to make a buffer of pH 4.0 using sodium acetate and acetic acid. The initial pH of the buffer solution was 3.9. How should the student adjust the pH to the desired value?

Describe a minimum of one crisis management situations : Prepare word paper in which you describe a minimum of one crisis management situations associated with physical or personal protection issues.

State how many grams of cacl2 are needed to make solution : How many grams of CaCl2 are needed to make 968.1 g of a solution that is 35.5% (m/m) calcium chloride in water? (Note that m/m has the same meaning as w/w.)

List the sample space : Determine the exact probability of creating a mini license plate with a 5. Give solution exactly in reduced fraction form.

User Account

All Pages