Determine whether the firm is operating efficiently

Reference no: EM13318953

A company uses two variable inputs, labor (L) and materials (M), to produce its output. At the company's current level of output:

CL = $10 / unit MPL = 25

CM = $2 / unit MPM = 4

a) Determine whether the firm is operating efficiently, given that its objective is to minimize the cost of producing the given the level of output

b) Determine what changes (if any) in the relative proportions of labor and materials are needed to operate efficiently

Reference no: EM13318953

Questions Cloud

What angle is subtended over that time : If a 56 diameter circular disk is uniformly angularly accelerating at a rate of 5.0 rad/s2, What angle is subtended over that time

What is its velocity at the edge : A large circus ride has a centripetal acceleration at 6.0 m/s2. If the circular ride has a radius of 11.0 m, what is its velocity at the edge

What is the force of friction exerted on the puck : A puck slides on a surface for 5.6 m before it stops. If it was moving at a velocity of 15 m/s and has a mass of 1.2 kg, what is the force of friction exerted on the puck

Determine the initial velocity of the bullet : A 35 g bullet is fired in a ballistic pendulum device (see page 178 In text), what was the initial velocity of the bullet

Determine whether the firm is operating efficiently : a) Determine whether the firm is operating efficiently, given that its objective is to minimize the cost of producing the given the level of output

Explain what is the percent yield of reaction : 6Li(s) + N2(g)------ 2Li3N(s) a, What is theortically yield of Li3N in gram when 12.1gm of Li is heated with 33 gm of N2? b, If actual yield of Li3N is 6.09g what is the percent yield of reaction

Find the velocity of the two cars : A rail car of mass 4500 kg is moving with a velocity of 12.4 m/s collides with a stationary rail car of mass 6700 kg. What is the velocity of the two cars

Discuss the effects of the project on the local community : Discuss the effects of the project on the local community of the project described below 1.) The social, economic and environmental significance of the project within the local community 2.) The good, and bad impacts the project might have.

Labor and materials are needed to operate efficiently : Determine what changes (if any) in the relative proportions of labor and materials are needed to operate efficiently

User Account

All Pages