Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given an output price of $500 total output (in body table), the quantity of each input (in rows 1-5), the price of inputs (in columns),
Given an output price of $500 total output (in body table), the quantity of each input (in rows 1-5), the price of inputs (in columns), and a budget of $1,200,000, calculate marginal product and marginal revenue product for each input (row 2-5). Which resources in what quantities should be employed to maximize the value of the firm?
Low skill labor | high skill labor | Supplies | Low Cap. Equip. | High Cap. Equip. | Building & Land | |
Input | $30,000 | $50,000 | $20,000 | $100,000 | $400,000 | $500,000 |
1 | 64 | 120 | 50 | 250 | 1,000 | 1,350 |
2 | 130 | 220 | 98 | 475 | - | - |
3 | 200 | 300 | 144 | 675 | - | - |
4 | 266 | 360 | 186 | 850 | - | - |
5 | 330 | 400 | 228 | 1,000 | - | - |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started