Firm maximizing profit, Macroeconomics

Assignment Help:

A firm with two factories, one in Michigan and one in Texas, has decided that it should produce a total of 500 units to maximize profit. The firm is currently producing 200 units in the Michigan factory and 300 units in the Texas factory. At this allocation between plants, the last unit of output produced in Michigan added $5 to total cost, while the last unit of output produced in Texas added $3 to total cost.
Is the firm maximizing profit? If the firm produces 201 units in Michigan and 299 in Texas, what will be the increase (decrease in the firm's total cost?


Related Discussions:- Firm maximizing profit

How split between current yield and capital-gains yield, Suppose that a sec...

Suppose that a security costs $3,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities: b: $3,000 $3,300 $

Wi cost of debt and wacc, hi I just found an interesting problem on your pa...

hi I just found an interesting problem on your page,(wood investments ... Mutch PLC) I would like to see the answer Could you please give me a quote for the answer?

Why do some countries have a high real per capita income, Why do some count...

Why do some countries have a high real per capita income? High standard of living within the industrialized nations consider to be largely because of the high productivity of

Choice amonga lottery, You have a choice between a lottery lump sum payout ...

You have a choice between a lottery lump sum payout of $10,000,000 today or a series of 25 annual annunity payments the first payment will be one year from today ad a discount rate

Investment, What are the basic differences between the investment curve and...

What are the basic differences between the investment curve and an investment demand curve for an economy

Marginal product of labor and capital, We define marginal product of labor,...

We define marginal product of labor, MP L as the derivative of f with respect to the L - which is, as (approximately) how much Y will increase when L increases by one unit. We als

Explain the problem with IS-LM model, Q. Explain the problem with IS-LM mod...

Q. Explain the problem with IS-LM model? The starting point of AS-AD model is an assumption in IS-LM model (and in the cross model) that limits its usefulness. This is an assum

Foreign institutional investment, Foreign Institutional  Investment: ...

Foreign Institutional  Investment: Foreign  investment flows in the balance of payments  (BOP) comprise FDI flows and portfolio flows. The latter consists of resources mobilis

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