What will happen if firm uses units of labor and capital

Assignment Help Econometrics

Reference no: EM13218151

A firm is using 500 units of labor and 100 units of capital to produce 100 units of output. Labor costs $5 per unit and capital $20 per unit. At these input levels, another unit of labor adds 5 units of output, while another unit of capital adds 40 units of output. If the firm uses 496 units of labor and 101 units of capital instead, what will happen?

Reference no: EM13218151

Questions Cloud

Marketing and advertisement at your local art museum : You are in charge of marketing and advertisement at your local art museum. Next month, the museum will be hosting an exhibition on the social role of the arts in early Chinese and Japanese civilizations.

Develop long-term relationships with customers : What are the key differences between strategic, operational, analytical and collaborative CRM and develop your own definition of CRM. Make sure that the definition is neither too broad nor too narrow, and encompasses all four forms of CRM - strateg..

Systems model place nursing at the focus : Using a systems model (like Neuman’s), place nursing at the focus. Picture the relationships that fit with your model. Make a chart, drawing, or map that shows the relationships.

Determine the probability distribution of the number of time : Let us consider the detection of the framing bit in the T1 carrier by the receiver. Assume that the data bits in a frame assume values of 1 and 0 with equal probabilities of 0.5 and independent of each other. The framing bit alternates between 1 a..

What will happen if firm uses units of labor and capital : A firm is using 500 units of labor and 100 units of capital to produce 100 units of output. Labor costs $5 per unit and capital $20 per unit. At these input levels, another unit of labor adds 5 units of output, while another unit of capital adds 4..

Describe risks of smoking and its addictive nature : On May 24, 2004, U. S. District Judge Gladys Kessler ruled the big tobacco companies Philip Morris, Reynolds, and Liggett would be liable for $ 280 billion almost all their profits during the past 50 years if the U. S. Department of Justice ( DOJ)..

Elastic or inelastic : A 500 kg truck moving at 30 m/s strikes a pared 300 kg car they connect together and move forward what kind of collision is this(elastic or inelastic)

Why colorado should or should not shut down its coal power : How does this cost compare with the current cost of new coal figured generation at 3.5¢/kWh? Write a brief (400 words or less) argument on why Colorado should or should not shut down its coal power plants and replace them with wind farms?

Differing claoud conditions in eastern-western equatorial : how could the differing claoud conditions in the Eastern and Western Equatorial Pacific act to reduce this sea surface temperature contrast and turn the system from a la Nina to and Elnino state?

User Account

All Pages