Explain how is the firm maximizing profit

Assignment Help Econometrics

Reference no: EM13205890

The current market wage rate is $10, the rental rate of land is $1,000 per unit, and the rental rate of capital is $500. Production managers at a firm find that under their current allocation of factors of production, the marginal revenue product of labor is 100, the marginal revenue product of land is $10,000, and the marginal revenue product of capital is $4,000. Is the firm maximizing profit? Why or why not?

Reference no: EM13205890

Questions Cloud

What do you expect earnings for the year to be : Time-series data for the last 15 years are used to estimate the regression model. E = a + bN where E is total earnings of the motion picture industry measured in dollars per year and N is the number of tickets sold in December.

Evaluate the second partners advice not to move downtown : One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at the downtown location plus the cost of making the move.

Explain difference in monopoly nd perfectly competitive firm : Based on the above graph, answer the following questions for a monopoly and a perfectly competitive firm. A. For the monopolist: i. Profit maximizing output = ii. ATC = iii. AR = iv. Price = v. Total Revenue = vi. Total Cost = vii. Profit = GE273

Advise jerry regarding the long-run decision to produce : Given a numeric production schedule, you will calculate profit and make decisions about short-run profitability to answer questions relating to your calculations. Jerry's Lock Shop is a perfectly competitive firm, and Jerry is operating at his lev..

Explain how is the firm maximizing profit : The current market wage rate is $10, the rental rate of land is $1,000 per unit, and the rental rate of capital is $500. Production managers at a firm find that under their current allocation of factors of production, the marginal revenue product ..

Why is the demand of labor a derived demand : Why is the demand of labor a derived demand Explain the shape of the supply of labor curve. What is the relationship between productivity and the wages earned by an employee What are some factors that determine the level of your income

Explain adenosine monophosphate is a regulatory molecule : Adenosine monophosphate (AMP) is a regulatory molecule in metabolic processes such as glycolysis and gluconeogenesis. For example, it stimulates the glycolytic enzyme phosphofructokinase, and therefore ATP production, and it inhibits the gluconeog..

What is the price of an oligopoly product : Which of the following statements is false a. Natural monopolies do not need to be regulated because they naturally behave to benefit society. b. Oligopoly markets require firms to behave strategically. c. Monopolistic competition produces with exces..

Explain what is the ph of a solution of sodium nitrite : What is the pH of a 1.2M solution of sodium nitrite, NaNO2? the Ka for nitrous acid (HNO2) is 4.5x10^-4be as specific as possible and list all the steps

User Account

All Pages