Determining marginal product of labor

Reference no: EM1368014

A firm uses two variable inputs, labor (L) and raw materials (M), in producing its output. At its current level of output:

CL = $10/unit MPL = 25
CM = $2/unit MPL = 4

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

b) determine what changes (if any) in the relative proportions of labor and raw materials need to be made to operate efficiently.

Reference no: EM1368014

Questions Cloud

Alter minix three to count sent processes : The assignment is to alter Minix 3 to count sent processes and print it into table saying who sent and who's receiving. He said we require place to store counts and then print in readable fashion.

Health care basics terminology : Need help with to get definition of terms and to translate and define the given abbreviations. In a short paragraph, share what you would consider the most significant aspect of each.

Unit of mearsurement in commodity market : what is the unit of mearsurement in commodity market and what are the things that will impact the price

Self-selection of investors to maximize transaction profits : Pelican Point financial group's clientele consists of 2-types of investors. The 1sttype of investor makes many transactions in a given year and has a net worth of over 1 million dollar.

Determining marginal product of labor : Determine whether the firm is operating efficiently, given that its objective is to minimize the cost of producing the given level of output. Determine what changes (if any) in the relative proportions of labor and raw materials need to be made to..

Explain tcp-ip protocol and file transfer protocol : "Choose one of the key terms ie TCP/IP protocol, File transfer protocol,OSI model,wireless workstation) and write a paper about it. Apply the following criteria:

Complementary medicine and psychoneuroimmunology : Explain how this complementary medicine, psychoneuroimmunology, is an ethical or legal issue regarding its use in the treatment and what it brings to the healthcare providers.

What is reasonable accommodation : Have you ever experienced a workplace situation where you employed the use of 'reasonable accommodation' and what was the situation and resulting action

Computing maximum profit and revenue : Assume that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.

User Account

All Pages