Explain how the firm can produce the same output, Managerial Economics

Assignment Help:

A firm is employing 100 hours of labor and 50 tons of cement to produce 500 blocks. Labor costs Rs 4 per hour and cement costs Rs 12 per ton. For the quantities employed MPL = 3 and MPC = 2. Show this situation in an isoquant-isocost diagram. Explain and show in the diagram, how the firm can produce the same output at a lower total cost.

Related Discussions:- Explain how the firm can produce the same output

#Demand function.., Calculate point elasticity of demand for demand functio...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs. 3 to 2

Managerial economic, gap between economic theory and business practice

gap between economic theory and business practice

Income and substitution effects of price change, Income and Substitution Ef...

Income and Substitution Effects of Price Change When the price of a commodity falls the consumer's equilibrium changes. The consumer can purchase the same quantity of X and Y

Theory of multiplier, income generation process through investment multipli...

income generation process through investment multiplier

Limitations of uneven distribution of income and wealth, Limitations of Une...

Limitations of Uneven Distribution of Income and Wealth Unlike the historical experience of the now developed countries, the rich in contemporary Third World Countries are not

Discouting priciple, Using the discounting principle calculate the present ...

Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next five years at 10% interest. stion..

What is the advantage of mixed economy system, Benefits are: 1) People...

Benefits are: 1) People can create their own decisions 2) The government has limited control, which is good for arrangement 3) Gives freedoms like Enterprise, ownership,

Uses of production function, The production function can have many uses. It...

The production function can have many uses. It can be used to compute least-cost factor combination for a given output or maximum output combination for a given cost. Knowledge of

Explain about transaction cost theory, Q. Explain about Transaction Cost Th...

Q. Explain about Transaction Cost Theory? The below model reveals market and institutions as a possible form of organisation to coordinate economic transactions. When external

In how costless bargaining will lead to a socially efficient, A firm can pr...

A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the community are $500,000 per year. If it produces with

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages