User Account

All Pages

Is the firm maximizing output relative to its labor cost

Assignment Help Macroeconomics
Reference no: EM132219822

Petram Company has two plants, one in the United States and one in Vietnam, and it cannot change the size of the plants or the amount of capital equipment. The hourly wage in Vietnam is $5, while the hourly wage in the United States is $20. Given current employment, the marginal product of the last worker in Vietnam is 100, and the marginal product of the last worker in the United States is 500. Based on this information, answer the following questions.

  1. Is the firm maximizing output relative to its labor cost? Explain how you know.
  2. If it is not, what should the firm do?

Reference no: EM132219822

Questions Cloud

Short-run average total cost : How can the long-run average cost (LRAC) curve be derived from the short-run average total cost (SRATC) curve?
Calculate the average product of labor : Calculate the average product of labor when 9 units of labor are utilized. Calculate the marginal product of labor when 9 units of labor are utilized.
What is the average fixed cost of producing : What is the average fixed cost of producing 4 units of output? What is the average variable cost of producing 4 units of output?
Identify your professional position on the topic : Using the Ashford University Library, research at least three peer-reviewed articles on your chosen topic that either support or challenge aspects.
Is the firm maximizing output relative to its labor cost : Is the firm maximizing output relative to its labor cost? Explain how you know. If it is not, what should the firm do?
What about the budgetary process do you think contributes : Which actor or group of actors do you believe is most able to effect the governmental budgeting system? Why did you choose who you chose?
What are your fixed costs : You are about to open a business and must obtain a license from the city for $25,000. The license is transferable, but only $4,000 is refundable
Write a diagnostic paper on the given topic : Write an 8 to 12 page diagnostic paper on the topic of Obsessive-compulsive and related disorders. Hooley, J.M., Butcher, J.N., Nock, M.K. & Mineka, S..(2017).
Function exhibit diminishing marginal return : The production function of MEGA Company is given by 5L(0.5)K(0.3)M(0.3), where L is labor, K is capital, and M is material. Based on this information

Reviews

Write a Review

Macroeconomics Questions & Answers

  Write a justification for capital purchase to vice president

Write a justification for capital purchase (1,000-1,200 words) to your vice president as to why the purchase would be a good investment for the hospital. Include a one-page executive summary for your proposal.

  How should firm change its output level to maximize price

If a specific subsidy (negative tax) of s is given to only one competitive firm, how should that firm change its output level to maximize its profit, and how does its maximum profit change

  Is it a good idea to impose a heavy tax on e-cigarettes

In your opinion, is it a good idea to impose a heavy tax on e-cigarettes? Why or why not? If the government needs extra revenue, is this tax a better option than other taxes?

  Demand for columbia brother coffee

Suppose that the price of flavored milk is increased by 5 %. What impact will this have on the demand for Columbia Brother's coffee?

  Competitive process in markets

As a result, collusion among private companies often seeks to divide market areas to maximize monopoly profits. To illustrate the competitive process in markets dominated by few firms, assume that a two-firm duopoly dominates the market for weekly..

  Determine the optimal allocation of time

What is it and how do we represent this information in a graph (You do not need to draw a graph to answer this question correctly)?

  How does this change affect the incentives for working

A 1996 nill reforming the federal goverment's antipoverty programs limited many welfare recipients to only two years of benefits.

  Why are interest rates so low

This is a post from Ben Bernanke's blog. The purpose of the post is to explain why interest rates are so low and the role that the Federal Reserve (the Fed) plays in determining the rates.

  1 economists have announced that the country is

1. economists have announced that the country is experiencing aninflationary gap. what economic symptoms or indicators

  Is the cellular carriers elasticity of demand elastic

There is a stretch of I-81 in Virginia where there is a single cellular carrier that has roaming charges for any cell phone calls made in its territory. It is the only cellular carrier in that territory, and it is confident that no other cellular ..

  Determine the stagnant energy use per person

Since 1990, energy use per person has either remained fairly stagnant or has increased in different nations and regions of the world. Match the nation or region with the trend in energy use per person since about 1990. Column preview China. increa..

  How and why the uss deficit have an effect on tax payers

Discuss within your Learning Team how and why the U.S.'s deficit, surplus and debt have an effect on the following: Tax payers Future Social Security and Medicare users Write a 350- to 1,050-word paper that details your team's findings.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd