Solution-Questions about the production process of firms

Questions about the production process of firms

Assignment Help Business Economics

Reference no: EM131457276

Question 1:

Answer the following questions about the production process of firms.

a) Suppose the marginal produce of labor is: MPL= 10, the marginal product of capital is:

MPK= 20, while the cost of labor is: W= $5 and the cost of capital is: r= $30. Is the firm minimizing cost? If not, what should the firm do to produce the same level of output, but at a lower cost?

b) Suppose: MPL= 10, MPK= 20, W= $20 and r= $40. Is the firm minimizing cost? If not, what should the firm do to produce the same level of output, but at a lower cost?

c) If the cost of labor increases, while the cost of capital stays the same and the firm wants to produce the same level of output, how will the firm's cost-minimizing levels of labor and capital change?

d) If the costs of labor and capital both increase by 10%, and the firm wants to produce the same level of output, how will the firm's cost-minimizing levels of labor and capital change?

Reference no: EM131457276

Questions Cloud

How organization can modify present organizational structure : Your ideas and recommendations on how your organization can modify its present organizational structures to be more efficient and effective in the future.

Profit maximizing level of output of firm : Solve for the profit maximizing level of output of each firm in the long-run. (hint: each firm earns zero profit in the long-run...)

How much should buyers offer to acquire the firm : An owner-manager of a firm is contemplating selling it to any one of a number of prospective buyers. The firm has net operating loss carry-forwards.

Production process exhibit cost complementarities : Does this firm's production process exhibit cost complementarities? How do you know?

Questions about the production process of firms : Suppose the marginal produce of labor is: MPL= 10, the marginal product of capital is:

Identify the key elements that serve as a positive draw : Identify the key elements that serve as a positive draw of this talent to your organization. Why should your company consider including that as part of package.

Solve for the optimal contract length : Solve for the optimal contract length (x), and indicate this value below.

Discuss dr wilsons prescription for the private sector : Discuss Dr. Wilson's "prescription" for the private sector, business, and government. Do you concur with this prescription? Why, or why not?

Define even absent restrictions on deductibility of interest : Assume you face a progressive tax rate system. Show that it does not pay for you to reduce your explicit tax rate on fully taxable income to below the implicit

User Account

All Pages

Questions about the production process of firms

Reference no: EM131457276

Reference no: EM131457276

Questions Cloud

Reviews

Write a Review

Business Economics Questions & Answers

Economics assignment

Demand and supply curves

Long-run perfectly competitive equilibrium for the firm

Supply and demand diagrams

Case study: fisher-price toys

Draw the production possibility curve

Tax revenue

Maximize total welfare

Difference between the cv and the ev

Depict von neumann-morgenstern utility index u in a diagram

What is the market solution

Calculate gross national product and net national product

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT