Explain what the firm ought to do

Reference no: EM13212090

A firm purchases capital and labor in competitive markets at prices of r = 16 and w = 24, respectively. With the firm's current input mix, the marginal product of capital is 72 and the marginal product of labor is 48. Is this firm minimizing its costs? If so, explain how you know. If not, explain what the firm ought to do (use a graph and explain briefly).

Reference no: EM13212090

Questions Cloud

What is the actual strain : You have a 120 Ω quarter bridge 2 wire set up with Sg=2.10 and an unknown lead wire resistance. A 59880Ω calibration resistor is switched in parallel to the gage only and a recording instrument is set to give a -100 mm deflection for this calibrat..

What would be the cost minimizing combination of capital : Given the following production function with two inputs, Capital (K) and Labor (L), whose input prices are $1 each. Suppose the company needed to produce 50 units. What would be the cost minimizing combination of capital and labor needed

Find what income elasticity of demand was last week : The demand for pencils by New York University students at the bookstore is given by the following equation, , where I is the average income of nyu students, in dollars per week, Q pencils is the quantity of pencils sold per week.

Define cyclohexane and cyclopentane or ehylene oxide : Make the compounds listed from an alkyl halide having four carbons or less, with no functional groups but it can be branched, or cyclohexane, cyclopentane, or ehylene oxide.

Explain what the firm ought to do : A firm purchases capital and labor in competitive markets at prices of r = 16 and w = 24, respectively. With the firm's current input mix, the marginal product of capital is 72 and the marginal product of labor is 48. Is this firm minimizing its c..

Consider a thermal energy reservoir : Consider a thermal energy reservoir at 1500 K that can supply heat at a rate of 150,000 kJ h-1. Determine the exergy of this supplied energy, assuming an environmental temperature of 25 oC.

Determine the maximum flexural strength : Immediately before failure, the testing machine records a force (F) of 50N, and a deformation (δ) of 2mm. We need to determine the maximum flexural strength (σ)

State the ph of the solution at the equivalence point : The next three (3) problems deal with the titration of 461 mL of 0.501 M carbonic acid (H2CO3) (Ka1 = 4.3 x 10-7, Ka2 = 5.6 x 10-11) with 1.1 M NaOH. What is the pH of the solution at the 2nd equivalence point

Describe possible methods that can be used to separate : describe possible methods that can be used to separate materials such as polymers, aluminium alloys and steels from one another.

User Account

All Pages