Estimate the firm operating efficiently, Managerial Economics

Assignment Help:

Suppose you are an efficient expert hired by a manufacturing firm that uses two inputs, labor (L) and capital (K). The firm produces and sells a given output. You have the following information:

PL = Rs 4, PK = Rs 100, MPL = Rs 4, MPK = Rs 40.

a) Is the firm operating efficiently? Why or Why not?

b) What should the firm do?

 


Related Discussions:- Estimate the firm operating efficiently

Long run equilibrium of a firm under perfect competition, In the long run, ...

In the long run, because of the assumption of free entry and exit of the firms, it's not possible for the firms to make super-normal profits nor it is possible for them to incur lo

Demand curve, Plot the demand schedule and draw the demand curve for the da...

Plot the demand schedule and draw the demand curve for the data given for Marijuana in the caseabove.

Elasticity of demand, a. Explain why the demand for a particular brand is m...

a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast

What are the sources of mononpoly, Question : i) Consider a discriminat...

Question : i) Consider a discriminating monopolist is selling a product in two separate markets in which demand functions are: P 1 = 6 - Q 1 P 2 = 18 - 2Q 2 The mono

Discovery of new technical know-how, Q. Discovery of new technical know-how...

Q. Discovery of new technical know-how? Growth of Technical Know-how: Expansion of an industry may result in the discovery of new technical know-how. As a result of this firm

Me, In a one-shot game, if you advertise and your rival advertises, you wil...

In a one-shot game, if you advertise and your rival advertises, you will each earn RM5 million in profits. If neither of you advertises, your rival will make RM4 million and you w

Organization for economic development (oecd), Organization for Economic...

Organization for Economic Development (OECD) An international organization found in Paris France in 1961, to act as a worldwide forum to stimulate world trade and

Insurance Premiums, Green Shield Insurance gives NEMO Corporation with cove...

Green Shield Insurance gives NEMO Corporation with coverage for prescriptions, dental work, and extended health services. Every subscriber uses $435 worth of dental services per ye

Time series, the table shows gasoline rates in US

the table shows gasoline rates in US

Many dollars of change in consumption, Given a saving function of S = -25 +...

Given a saving function of S = -25 + .2Yd, a $10 billion enhance in government spending will bring about how many dollars of change in consumption?

Write Your Message!

Captcha
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