FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. A firm produces at an output level where the marginal product of labor (MPL) is 50 units and the marginal product of capital (MPK)

image text in transcribed
6. A firm produces at an output level where the marginal product of labor (MPL) is 50 units and the marginal product of capital (MPK) is 100 units. Suppose that the wage rate (PL) is $25 and the rental price of capital (PK) is $40. a. Is this firm maximizing profit? b. What should the firm do if it is not allocating its budget efficiently

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

French Banking And Entrepreneurialism In China And Hong Kong From The 1850s To 1980s

French Banking And Entrepreneurialism In China And Hong Kong From The 1850s To 1980s

Authors: Hubert Bonin

1st Edition

0429560095, 9780429560095

More Books

Students also viewed these Economics questions

Question

★★★★★
Who sets accounting standards for public and private companies in Canada?

Answered: 1 week ago

Question

★★★★★
Differentiate three concepts of governance systemic governance, corporate, organisational or good governance, and political governance and explain the relevance of these concepts to management in...

Answered: 1 week ago

Question

★★★★★
2.30 Survival Times, continued Refer to Exercise 2.29. You can use the Empirical Rule to see why the distribution of survival times could not be mound-shaped. a. Find the value of x that is exactly...

Answered: 1 week ago

Question

★★★★★
Lockheed, one of the largest defense contractors in the United States, reported EBITDA of $1,290 million in a recent financial year, prior to interest expenses of $215 million and depreciation...

Answered: 1 week ago

Question

★★★★★
CASE STUDY: YOUTIGER WASTE MANAGEMENT LTD. YouTiger Waste Management Ltd (YTWM) is Zoomlions main competitor in waste management solutions in Ghana. YTWM is in the business of collecting,...

Answered: 1 week ago

Question

★★★★★
1. A contract where two or more persons bind themselves to contribute money, property or industry to a common fund with the intention of dividing the profits among themselves. a. Voluntary...

Answered: 1 week ago

Question

★★★★★
The critical path assumes four facts. What are they? What is a useful scheduling tool to keep track of the critical path and increase the probability of on time completion?

Answered: 1 week ago

Question

★★★★★
Turner Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 660,000 ?units, requiring 3,300,000...

Answered: 1 week ago

Question

★★★★★
Record the following transactions in proper journal entry format on the General Journal form provided. Date Dec Transaction 1 James Spartan invested $20,000 in Spartan Repair Services. 10 5 6 220 25...

Answered: 1 week ago

Question

★★★★★
600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago

Question

★★★★★
Problem 1: The nonlinear model of the Skydiver is given by: dv dt = 9 m The exact solution of the expression is gm gc v(t) = tanh m where g = 9.81 m/s, c = 0.25 kg/s, t = 4s, and v = 36 m/s. Use the...

Answered: 1 week ago

Question

★★★★★
2. Now list, after going through a-c, three things that you want to be the impres-sion you want others to be left with after meeting you, and that you want to be lasting over time. List four points...

Answered: 1 week ago

Question

★★★★★
Relax your shoulders

Answered: 1 week ago

Question

★★★★★
Keep your head straight on your shoulders

Answered: 1 week ago

Previous Question Next Question