Please answer the following questions

Answer the following questions about cost minimization. 1. Suppose a firm can hire workers for $40 per hour. The marginal product of the last worker hired is 80. This same firm can pay $60 to rent machines that do the same work as labor but at a higher rate of productivity. The marginal product of the last machine is 100. Is this rm at its cost-minimization combination of its inputs of labor and capital? Explain and instruct the company what to do. 2. Suppose that the cost of capital for a rm for one day is $300 per unit and that workers are paid $200 per day. If the marginal product of the last worker is 1200 and the marginal product of the last unit of capital is 800, is this rm realizing its cost-minimization output? 3. The following four firms are employing resources as stated below. Prices of the inputs are as follows: Land: $5 per hour Labor: $10 per hour Capital: $25 per hour EFirm MP Land MP Labor MP CapitaIE a. Show how you would go about analyzing these rms to see if they are using the cost-minimizing inputs. b. Are any of the rms using the cost-minimizing input combination? c. What would you suggest to each of these firms regarding their use of inputs? 4. What is the purpose of a Lorenz Curve? 5. What type of line would show equal distribution of income on the Lorenz curve? 6. What is true when the plot of incomes is bowed out from the line described in question 5? 7. What is true when there is complete inequality of income distribution? 8. From the video, what is the formula for a Gini Coefficient? 9. What does the Gini Coefficient determine? 10. Is the Gini Coefficient a large or small number for a small inequality of income distribution? 11. Is the Gini Coefficient a large or small number for a large inequality of income distribution? Examine this Lorenz Curve and answer the questions: SSUJODLH POPULATION 12. If the measure of income inequality is represented by Line A, what is the formula for the Gini Coefcient? 13. If the measure of income inequality is represented by Line B, what is the formula for the Gini Coefficient