Write down a paragraph describing how the hernandez corp

Assignment Help Finance Basics

Reference no: EM13477665

Hernandez Corp. uses two variable inputs, X and Y, to produce its final product, canoes. Its engineering department has estimated the marginal product functions for inputs X and Y as follows: MPx = Y/X MPy = 4 X/Y Where X and Y denote, respectively, the quantity in hours of inputs X and Y used. At present Hernandez Corp. pays $40 per hour for input X and $10 per hour for input Y. It is using 200 hours of X and 100 hours of Y per day.

a. Write a paragraph explaining how the Hernandez Corp. finds the least cost combination of inputs for producing a given rate of output.

b. Using the data provided above, determine if the Hernandez Corp. is using a cost minimizing combination of inputs. Explain your answer/show your work. If your answer is no, how should the input combination be adjusted?

Reference no: EM13477665

Questions Cloud

The small group should have three to six people and be : gender perception in nonverbal communicationin this assignment you will explore the role of nonverbal communication in

The widget industry in springfield is competitive with many : the widget industry in springfield is competitive with numerous buyers and sellers. consumers dont differentiate among

Explain when sulfuric acid is a component of polluted air : there is a 200 word minimum response required for each question.credible reference materials including your course

The cross-price elasticity of demand for vcrs with respect : suppose that the current market price of vcrs is 300 that average consumer disposable income is 30000 and that the

Write down a paragraph describing how the hernandez corp : hernandez corp. uses two variable inputs x and y to produce its final product canoes. its engineering department has

Determine auto insurance is needed primarily because of : 1. auto insurance is needed primarily because ofa. potential damage to auto.b. potential liability claims.c. lenders

Examine earths resource allocation and resource consumption : answer thethree discussion questionsbelow individually and with own words. at least 4 pages or maximal 5 pages should

Become the leading coffee shop in arlington and to be the : primarily my project involves theestablishing of a javanet cafeacute where customers would enjoy coffee as they connect

Determine the expected value payment of each of the options : cameron is an investor trying to decide among the following three different investment options.option a price today

User Account

All Pages