When should the firm stop replacing one input for the other

Assignment Help Business Economics
Reference no: EM13158757

A firm is producing 1,000 units of output with 40 units of labor and 30 units of capital. The marginal product of the last units of labor and capital are, respectively, MPL = 69 and MPK = 135. The prices of labor and capital are, respectively, w = 30 and r = 85. What should the firm do in order to minimize the cost of producing 1,000 units of output? Should the firm increase capital and decrease labor or the other way around? When should the firm stop replacing one input for the other? Explain.

Reference no: EM13158757

Questions Cloud

Estimated loss contingency : The amount of the loss involved can be reasonably estimated. Based on the above facts, an estimated loss contingency should be:
Is he bound by the regulaions : He claimed that he was not bound by the regulations because he never knew that they had been adopted. Is he bound by the regulaions?
Practice of democratic principles : The United States political system and culture ascribes to the practice of democratic principles. Explain the principles of democracy as understood in the U.S.
How many chromosomes are in the organism karyotype : How many chromosomes are in the organism's karyotype.
When should the firm stop replacing one input for the other : Should the firm increase capital and decrease labor or the other way around? When should the firm stop replacing one input for the other? Explain.
How many ml of 0.250 m naoh are needed : How many mL of 0.250 M NaOH are needed to completely saponify 240. g of of glyceryl trioleate (triolein)?
At what price is the euilibrium price : Starting at the demand price $3.00 the demand quantities are 60,70,80,90,100. At what price is the euilibrium price? At what price does suplus occur? at how many large?
What fraction of the progeny will have ab or ab phenotype : what fraction of the progeny will have Ab or aB phenotype?
Management assessment of the financial condition : Does management's assessment of the financial condition agree with your assessment from the Financial Statements Paper Part I? Explain. Support your answer by using two of the three following analysis tools - trend, vertical, or ratio analysis.

Reviews

Write a Review

Business Economics Questions & Answers

  Elucidate what would be the right mix of monetary

Elucidate what would be according to your opinion the right mix of monetary and fiscal policies for years 2011-2012. Elucidate what would be according to your opinion the appropriate structure of your investment portfolio.

  What is his budget constraint in terms of consumption

What is his budget constraint in terms of Consumption and Hours Worked. Draw his budget constraint on diagram. Now draw several indifference curves and indicate utility maximizing level of Hours worked and Consumption.

  Show strategy to offer a discount that lowers the price

Currently, every book it sells is priced at $10.50. Show strategy to offer a discount that lowers the price of a book to $9.50, a 10% reduction in price using the midpoint formula.

  Maintain the same profit

If the company will sell the number of units obtained in part d and wants to maintain the same profit as last year, what will its new price have to be.

  Construction company is bidding

A construction company is bidding on a project comprising five high-rise buildings to be erected one after the other.

  Strategic decision making in competitive situations

Discuss Explain how "Game Theory" can be used to improve strategic decision making in competitive situations.

  Trying to conclude a nations economic success.

what could affect every also a Discussion of why it is more accurate to examine both when trying to conclude a nation's economic success.

  Why the monopolist will never select to operate

Explicate fully why the monopolist will never select to operate where the demand curve is inelastic.

  Illustrate what effect would suggestions have on production

Given economic conditions today, do you suggest expansionary fiscal policy or contractionary fiscal policy. Illustrate what effect would your suggestions have on production and employment.

  Fluctuations in the economys real growth rate

If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate delivery increases

  Government charges for electricity

Show the effect of an increase in the price that the government charges for electricity.

  Budget deficit are funds which some branches

Some people are saying which majority of the budget deficit are funds which some branches of the government owe to other branches.

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