User Account

All Pages

Marginal rate of technical substitution

Assignment Help Business Economics
Reference no: EM131423847

1. The production function for a competitive firm is Q = K.5L.5. The firm sells its output at a price of $10, and can hire labor at a wage of $5. Capital is fixed at one unit and costs $2. The maximum profits are: 

2. The production function is Q = K.6 L.4. The marginal rate of technical substitution is:

Suppose the marginal product of labor is 8 and the marginal product of capital is 2. If the wage rate is $4 and the price of capital is $2, then in order to minimize costs the firm should use:

A. more capital and less labor.

B. more labor and less capital.

C. three times more capital than labor.

D. none of the answers are correct.

Reference no: EM131423847

Questions Cloud

Develop a written action plan for the 2017 calendar : Develop a written action plan for the 2017 calendar year. In my action plan, list three (3) personal goals and three (3) academic goals I will set for myself in order for me to be successful at my University.
Compute a confidence interval for the mean call length : Give graphical and numerical summaries for these data.- Compute a 95% confidence interval for the mean call length. Comment on the validity of your interval.
Define the maintenance concept for the new system : Define the basic operational requirements for the new system.
What about negative risks with the new version working : What about negative risks with the new version working with existing applications such as potential compatibility or performance risks? /What risk mitigation strategies would you propose for migrating to SQL Server 2012
Marginal rate of technical substitution : 1. The production function for a competitive firm is Q = K.5L.5. The firm sells its output at a price of $10, and can hire labor at a wage of $5. Capital is fixed at one unit and costs $2. The maximum profits are: 2. The production function is Q =..
Write proposal survey that pertains to peanut allergies : Students will write a research proposal to fund a survey that pertains to peanut allergies and children. You may pick your audience. Make the audience known to the reader in the beginning of the paper
Who are the members of the executive committee : Who are the members of the executive committee or team, specifically the President, CEO, and CFO and what are their responsibilities? What makes them qualified for their positions
Why is us health care so costly : Why is U.S. health care so costly? Why have almost all past cost controls failed? What are the best ways to contain health care costs, and how can we do so without harming access or quality?
Give the test statistic and the degrees of freedom : Perform the significance test. Give the test statistic, the degrees of freedom, and the P-value. Summarize your conclusion.- Give a 95% confidence interval for the mean improvement.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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