Hw is mrp calculated using data presented in short run

Assignment Help Microeconomics
Reference no: EM13452834

Sullivan's Custom Cabinets operate in a perfectly competitive market and employs labor and capital. Labor costs $30 a day. Machines cost $36 a day. Currently, Sullivan's has six machines and the marginal revenue product of capital is $30. Output sells at $5 per unit. Sullivan's hires you as a consultant and provides you with the following production function chart.

Workers Days - 1,2,3,4,5,6,7

Total Output - 9,17,24,30,35,39,42

Explain, in your own words, the meaning of MRP.
How is MRP computed?
Using the data presented, in the short run, how many workers would you recommend Sullivan's hire per day to maximize profits?
Explain how you arrived at this number.

Reference no: EM13452834

Questions Cloud

Explain are employees treated as commodities at marriott is : paul krugman an mit economist states at the heart of capitalisms inhumanity-and no sensible person will deny that the
The purpose of the final paper is for you to culminate the : the purpose of the final paper is for you to culminate the learning achieved in the course by demonstrating your
What strategy would you use to begin to have everyone : your fast-food franchise has been cleared for business in all 4 countries united arab emirates israel mexico and china.
1which of the following is a limitation of the balance : 1.which of the following is a limitation of the balance sheet?a.many items that are of financial value are
Hw is mrp calculated using data presented in short run : sullivans custom cabinets operate in a perfectly competitive market and employs labor and capital. labor costs 30 a
What is the difference between the position a person holds : 1.what is the difference between the position a person holds in a company and their political power? is the top
Materials science is an interdisciplinary field where : materials science is an interdisciplinary field where science and technology are used to develop and apply our
How has our knowledge of dna improved the study of criminal : question how has our knowledge of dna improved the study of criminal forensics?the criteria for the report are as
How would you explain the entries to record allowance : how would you describe the entries to record the allowance methods for accounts receivables? what is their function?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Create a convergence in interests of stockholders n managers

Assume that the The World Steel industry wants to expand and that its only option is a merger. Now the industry is confronted with government regulations to oversee the merger.

  Why scarcity forces individuals to incur opportunity cost

a.)define the concept of economic models b.)define scarcity and choices and their relationship in the study of economics c.) why do economists disagree d.) Name and define economic resources or factors of production

  Use the given information to compute accounting profit and

use the following information to calculate accounting profit and economic profit.sales 100employee expenses 40inventory

  The spill must be cleaned up completely no matter cost

assume that the last worker hired of type a serves 100 additional customers per week at a wage of 500 per week and the

  Should the australian commonwealth government and the

should the australian commonwealth government and the various australian state and territory local government grants

  Find the amount of profit you earned on each share of ibm

determining profit or loss from an investment. three years ago you purchased 150 shares of ibm stock for 88 a share.

  Assume government forces monopolist to behave like

a monopoly faces demand given by q 200 - p. the marginal cost mc 10 is constant. the marginal revenue mr 200 - 2q.a.

  Compute total expected utility from each restaurant option

patricia is researching venues for a restaurant business. she is evaluating three major attributes that she considers

  Find the decision rule in terms of enpv what will be san

the san diego llc is considering a three-year project project a involving an initial investment of 80 million and the

  What is the economic profit that all firms earn

In what condition will a perfectly competitive firm that incurs economic losses choose to produce rather than shut down in the short run? Why will the firm do so (c) Should a firm produce at an output level at which long-run average cost is minimiz..

  Explain canadian exporters of goods to the us

Canadian firms that buy machinery and equipment from US suppliers c.cross border shoppers from Canada who shop for goods in the US retired Canadians who live in Arizona and Florida during the winter months

  What data would you look for to determine whether ford wage

In 1914, Ford Motor Company doubled its wage to $5 per day, a rate that was considerably above the average wage at that time.In terms of efficiency wages, explain why Ford would have had an incentive to do this.

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd