What should the firm do to improve its performance

Assignment Help Business Economics
Reference no: EM13982523

Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the firm's MPL is 10 while its MPK is 5.

a. Write the firm's isocost equation. What is the slope of the isocost?

b. Determine if the firm's mix of inputs is optimal. Explain.

c. If your answer to "b" is no, what should the firm do to improve its performance? Explain.

d. Now suppose as a result of a mandated increase in the minimum wage the wage increases to $80. What would be the implication of this change for this firm?

Reference no: EM13982523

Questions Cloud

Recommend the choice for management : Compare this with the decision with that of a Present Worth criterion. Submit your solution in a spread sheet.
Find the magnitude of the magnetic field the electon produce : Find the magnitude of the magnetic field this electon produces at the point A. Find the magnitude of the magnetic field this electon produces at the point B. Find the magnitude of the magnetic field this electon produces at the point C.
What is spontaneous symmetry breaking from a classical point : What is spontaneous symmetry breaking from a classical point of view. Could you give some examples, using classical systems.I am studying about the 't Hooft and Polyakov magnetic monopoles solutions, which says that the SU(2) symmetry is spontaneo..
What would be the total annual cost of the control system : A manufacturing company has proposed building a new plant in a region. The proposal to the regional government contains the following information: The new plant will employ 1,000 people and it is projected that another 1,500 service support jobs will..
What should the firm do to improve its performance : Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
What is the acceleration of the sphere : A sphere, with I=2/5 MR2 , rolls without slipping down a ramp of length L inclined an angle (theta) from the horizontal. What is the acceleration of the sphere at the bottom of the ramp.
True variance and standard deviation : A random sample of 15 snow mobiles was selected, and the lifetime (in months) of the batteries was measured. The variance of the sample was 8.6. Find the 90% confidence interval of the true variance and standard deviation.
Prefer maintaining accounts with large too big to fail banks : Some analysts claim that many wealthy depositors prefer maintaining accounts with large “too big to fail” banks, even if they could earn higher interest rates from smaller banks. Briefly explain why these depositors use this strategy?
Calculate the instantaneous acceleration of the raindrop : Assume the density ρ of the raindrop is a constant. Ignoring the resistance due to the fog and the air, calculate the instantaneous acceleration of the raindrop as a function of v, r, ρ , g, and k.

Reviews

Write a Review

Business Economics Questions & Answers

  Returning to substantial economic growth

Current, Greece has a debt of roughly 175% of GDP. The new government has announced it wishes to negotiate a write-off, something Eurozone leaders have so far refused. From prior knowledge and this post, I understand that governments may want to stim..

  What was unemployment rate-labor force participation rate

(All numbers in the thousands) In May 2015, the civilian non-institutional population was 250,455. The number of employed workers was 148,795. The number of unemployed workers was 8,674. The number not in the labor force is 92,986. What was the unemp..

  What factors as one determinant of long-run economic growth

conomist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth.

  Elucidate the reasoning for your vote based on the four step

Elucidate the reasoning for your vote based on the four steps of risk assessment. Consider any relevant political, social, and economic aspects involved.

  Explain how to solve the problem on excel

Construct a choice table for interest rates from 0% to 100%. If the MARR is 10%, which alternative should be selected? Can you please explain how to solve the problem on excel

  Determine its optimal average cash balance

The Duckett Group is trying to determine its optimal average cash balance. The firm has determined that it will need $8,100,000 net new cash during the coming year. According to the Baumol model, what should be Duckett’s average cash balance?

  Pessimism about an expected economic expansion

Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism abou..

  Breakeven price for the toy truck

At present, the original manufacturer is deciding either they should continue production of toy truck.

  Consider a market where demand is p10-2q and supply is pq2

consider a market where demand is p10-2q and supply is pq2. there is a consumption positive externality of 2.5unit of

  Indifference curve for this consumer and indicate its slope

Suppose a consumer’s preferences over goods 1 and 2 are represented by the utility function u(x, y) = (x+ y)^3. Draw an indifference curve for this consumer and indicate its slope.

  Illustrate what is upper limit to us worker wage per day

If U.K. workers wage is 30GBD per day (and fixed exchange rate is $2= 1GBD Illustrate what is upper limit to U.S. worker's wage per day.

  Substitution also income effect which would result

Elucidate using a diagram the substitution also income effect which would result from a change in the price of a normal good.

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!

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