What steps should the firm take to lower costs

Assignment Help Macroeconomics

Reference no: EM13220939

A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are: MPL = 20 MPM = 4 Is the firm minimizing costs? If not, what steps should it take to lower costs and still produce the same level of output?

Reference no: EM13220939

Questions Cloud

Compare the operational strategies of ryanair : Compare the operational strategies of Ryanair in a full-service airlines such as British airways or KLM.

How the four perspectives of operations strategy : Explain how the four perspectives of operations strategy would apply to the Ryanair and Flextronics.

Explain water to supply two typical households : An acre-foot of water Covers an acre to a depth of exactly 1 ft. An acre is 4840 yd2. An acre- foot is enough water to supply two typical households for 1.00 yr. (a) If desalinated water costs $1950 per acre- foot, how much does desalinated water ..

Which process design strategy does each use : Androsia manufactures batik fabrics in a labor intensive, low-volume process on the island of Andros. The Hershey tour shows how cocoa beans are processed into chocolate using a high-volume, line process.

What steps should the firm take to lower costs : A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are: MPL = 20 MPM = 4 Is the firm m..

Ways in which organization would benefit from localization : ways in which an organization would benefit from localization of IHRM activities. Provide examples of such benefits to support your response.

State the vapor pressure of benzene : The vapor pressure of benzene (C6H6) is 40.1 mm Hg at 7.6 C. The delta H vap=31.0 KJ/mol, what is benzene's vapor pressure at 60.6 C?

Describe who will comprise your management team : Describe who will comprise your management team and what talents or skills each of the teams members will bring to the organization. Include a simple organizational chart. How do I do this.. Please help!!

What is the difference between attitudes and values : In marketing, what is the difference between attitudes and values? Why is it an important distinction? Give examples?

User Account

All Pages