What is the marginal revenue product of land

Reference no: EM13205678

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: EM13205678

Questions Cloud

How is the surplus divided between groups in the economy : Explain what short-run impact immigration is likely to have on natives' wages and employment when immigrants are a) substitutes to natives and b) complements to natives. Explain also the so-called immigration surplus for the short-run case.

State what are its colors in acidic and in basic solutions : Phenolphthalein is one of the most common indicators. What are its colors in acidic and in basic solutions?

Explain reaction is a catalytic hydrogenation : This reaction is a catalytic hydrogenation that only partially reduces an alkyne. Consider whether the hydrogenation

Identify the potential donor atoms in each of lewis bases : Identify the potential donor atoms in each of the following Lewis bases and classify the donor atom(s) as hard soft or borderline bases

What is the marginal revenue product of land : 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 ..

State indicate whether reactants or products will be favored : Using Hard-Soft Acid-Base Theory, classify each of the species in the following equilibrium as hard or soft and indicate whether reactants or products will be favored

What should the number of beats be : She checks her pulse for 10 seconds while exercising. What should the number of beats be?

Why is the revenue of the average sole proprietorship less : There are many more sole proprietorhips than corporations or partnerships. Why are there so many sole proprietorships Why is the revenue of the average sole proprietorship less than that of the typical corporation

Find all the points of the parabola : Find all the points of the parabola y^2=8x such that the perpendicular line segment from P to the directrix and the line segment from P to the Focus are two sides of an equilateral triangle.

User Account

All Pages