Firm using the right balance of capital and labor

Assignment Help Business Economics

Reference no: EM131159667

The marginal product of labor is 10 and the marginal product of capital is 20. If the wage rate is $10 and the price of capital is $5, is the firm using the right balance of capital and labor? Explain why or why not. If why not, which input should they use more of?

Reference no: EM131159667

Questions Cloud

Firm marginal revenue at the current price and quantity : A firms demand curve is given by P = 500 -2q, the direct Q = 250 - 1/2P. The firm's current price is $300 and the firm sells 100 units of output per week. Calculate the firm's marginal revenue at the current price and quantity. Using the Make-up Form..

How will the enrollment process be initially kicked off : How will the enrollment process be initially kicked off? How will the plan be communicated to make it attractive? Draw conclusions based upon readings of, Martocchio (2015) and/or Milkovich, Newman and Gerhart (2015), personal experience, and data ..

How can these people try to minimize high levels of stress : Stress is mentioned throughout this case study. How does this stress occur? What stress outcomes occur for people in these types of jobs? How can these people try to minimize high levels of stress

What impact did charlemagne have on early medieval period : What impact did Charlemagne have on the early medieval period? How did architecture develop throughout the Middle Ages? Explain the influence of Christianity on the visual arts, literature, and music of this time.

Firm using the right balance of capital and labor : The marginal product of labor is 10 and the marginal product of capital is 20. If the wage rate is $10 and the price of capital is $5, is the firm using the right balance of capital and labor? Explain why or why not. If why not, which input should th..

Explanation of an underlying investment philosophy : An explanation of an underlying investment philosophy and strategy for the development of the portfolio, which is consistent with the indicated requirements of the client.

Explain critical mistakes to avoid in recruitment process : Explain the critical mistakes to avoid in the recruitment process, mistakes that may have resulted in the recruitment challenges at Ellard Williams. This information would be beneficial to tailor the recruitment processes at Ellard Williams to cur..

Determine the pure strategy nash equilibria : For the following situation, come up with a game (in normal form – the matrix representation we have been using) to describe the situation. Determine the pure strategy Nash equilibria.

What is or are the writers objective : Is this written in the direct order or the indirect order? - Is the choice of order appropriate? Discuss why or why not. - What is or are the writer's objective or objectives? List it or them.

User Account

All Pages