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2. A firm is using 2300 units of labor and 200 units of capital to produce 5.000 units of output. At this combination the marginal product of laboris 23 and the marginal product of capital is 40. The price of laboris SIO and the price of capital is 560. The MP per dollar of laboris and the MP per dollar of capital is b If the firm increases labor by one unit and decreases capital by just enough units to keep output constant, capital inputs will fall by units, and costs will all by S c. If the firm increases labor and reduces capital the marginal product of labor will (rise, full remain the same), while the marginal product of capital will (rise, fall, remain the same d. To produce the current output at the minimum cost the firm should increase and decrease _until the MP/MP equals 3. You manage a manufacturing plant that makes gadgets using labor and capital. The production technology is summarized by the production function: KL The assembly machines, K, are cach rented for $200 per week, and the wage rate is $800 per week. Currently your plant has a fixed installation of 60 assembly machines, and produces 12,800 units per woek. Use this information to find the following: a Number of workers La b. The short run cost of production TC = $. c. The average cost is $ A new production facility is being designed that will be able to produce 12,800 gadgets at lowest possible cost. d. and the marginal product of capital The marginal product of labor is MPL = is MPX e. Number of workers L= f. Number of machines K = & The long run cost of production TC = $_ h. The long run average cost is $ 2. A firm is using 2300 units of labor and 200 units of capital to produce 5.000 units of output. At this combination the marginal product of laboris 23 and the marginal product of capital is 40. The price of laboris SIO and the price of capital is 560. The MP per dollar of laboris and the MP per dollar of capital is b If the firm increases labor by one unit and decreases capital by just enough units to keep output constant, capital inputs will fall by units, and costs will all by S c. If the firm increases labor and reduces capital the marginal product of labor will (rise, full remain the same), while the marginal product of capital will (rise, fall, remain the same d. To produce the current output at the minimum cost the firm should increase and decrease _until the MP/MP equals 3. You manage a manufacturing plant that makes gadgets using labor and capital. The production technology is summarized by the production function: KL The assembly machines, K, are cach rented for $200 per week, and the wage rate is $800 per week. Currently your plant has a fixed installation of 60 assembly machines, and produces 12,800 units per woek. Use this information to find the following: a Number of workers La b. The short run cost of production TC = $. c. The average cost is $ A new production facility is being designed that will be able to produce 12,800 gadgets at lowest possible cost. d. and the marginal product of capital The marginal product of labor is MPL = is MPX e. Number of workers L= f. Number of machines K = & The long run cost of production TC = $_ h. The long run average cost is $
