Firm maximizing output relative tom its labor cost

Assignment Help Business Economics

Reference no: EM13735404

A firm has two plants, one in the US and one in Mexico and it cannot change the size of the plants or amount of capital equipment. This wage in Mexico is $5. The wage in US is $20. Given current employment the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the US is 500.

Chart

Number of workers. Unit of output

0 0

1 40

2. 90

3. 126

4. 150

A) is the firm maximizing output relative tom it's labor cost? Show how you know.

B) if it is not, what should firm do?

Reference no: EM13735404

Demand curves represent an entire market for a commodity

The following two individual demand curves represent an entire market for a commodity. What is the market demand curve for the commodity? show the market demand in equation an

Irrespective of economic conditions

Think about our economy. Irrespective of economic conditions, we consume many goods and services in various quantities. There is a constant allocation and re-allocation of res

Reinert maintains that evidence is that north-south trade

Reinert maintains that the evidence is that North-South trade has a _______ negative impact on the wages of Northern unskilled workers, and that protectionism ___________ a re

Agreement and disagreement among economists

Suppose that Charles, an economist from an AM talk radio program, and Dina, an economist from a university in Massachusetts, are arguing over government intervention. The foll

What is opportunity cost of cheese in france

What is opportunity cost of cheese in France at 2 kilograms to Germany 1 kilogram? Which country France or Germany has comparative advantage in cars at France .25 and Germany

Smoking cigarettes is a leading cause of many diseases

Smoking cigarettes is a leading cause of many diseases. The government has opened several public clinics that treat smoking-related diseases and is trying to decide how to fun

What is the elesticity of demand for soda

Suppose the monthly demand for soda by a consumer is given by Q=10 - 8P . A/ If the price of soda is $1 per can, how many sodas will the consumer purchase in a typical month?

Obtained for the market demand for cereal

The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In P+0.75In A-1.3M, where Q is the quantity of cereal, P is the price of cereal, A

Reviews

Write a Review

Message

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages