Business, 21.02.2020 01:30 funnyadriany4
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $58,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $62,000. Additional workers each cost $4000 per month, while an additional tractor would also cost $4000 per month.
a. What is the marginal product of labor? The marginal product of capital?
MPL = $¬
MPK = $¬
b. What is the ratio of the marginal product of labor to the price of labor (MPL / PL )?
MPL / PL = ¬
What is the ratio of the marginal product of capital to the price of capital (MPK/ PK )?
MPK / PK = ¬
c. Is the firm using the least-costly combination of inputs?
Choose:
1. Yes, because MPK/PK = MPL/PL.
-or-
2. No, because MPK/PK > MPL/PL.
d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent?
Choose:
1. Revenue is increased more by spending money on an additional worker.
-or-
2. Revenue is increased more by spending money on an additional tractor.
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 17:10, falabit
Which statement describes a monopoly? many firms produce identical products with no control over the market price. many firms produce differentiated products with control over market price. a single firm produces a product with no close substitutes and control over the market price. a single firm produces a product with many close substitutes and limited control over the market price.
Answers: 1
Business, 21.06.2019 19:40, farrellandnandi
Which of the following is false regarding the links between jit and quality? a. jit increases the cost of obtaining good quality. b. as quality improves, fewer inventory buffers are needed; in turn, jit performs better. c. jit reduces the number of potential sources of error by shrinking queues and lead times. d. inventory hides bad quality; jit immediately exposes it. e. if consistent quality exists, jit allows firms to reduce all costs associated with inventory.
Answers: 3
Business, 21.06.2019 21:00, Bri0929
Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.
Answers: 1
You know the right answer?
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s...
Questions in other subjects:
Mathematics, 18.04.2020 05:41
Mathematics, 18.04.2020 05:41
Mathematics, 18.04.2020 05:41
