Identify combination of workers and capital that will be use

Assignment Help Macroeconomics
Reference no: EM13233565

assume that the firm is currently producing 6 units of output at point B on isoquant IQ6. Suppose now that the firm plans to expand output to 9 units by hiring more workers while continuing to use K2 units of capital (capital is assumed to be a fixed input in the short run).

1) Identify the combination of workers and capital that will be used.

2) Is the total cost of producing 9 units of output in this way greater than, less than, or same as the cost at point C? Support your answer by showing what has happened using LAC and SAC curves.

Reference no: EM13233565

Questions Cloud

Explain what was the best level of emission reduction : Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulate..
What would be the best choice of the degree : A B+ - tree index is to be built on the name attribute of the relation student
Crisis of loyalty the social and political systems : Compare and contrast the development of the English and French monarchies between the Norman Conquest and the Hundred Years War in terms of the “crisis of loyalty”, the social and political systems that characterized Medieval Europe
What was the labor productivity : Last week employees at Renee's Fashions worked 360 hours to produce 128 garments. Of these, 8 were seconds which were sold at the outlet store for $90 each. The remaining 120 garments were sold to retail distribution for $120 each. What was the la..
Identify combination of workers and capital that will be use : 1) Identify the combination of workers and capital that will be used.  2) Is the total cost of producing 9 units of output in this way greater than, less than, or same as the cost at point C Support your answer by showing what has happened using L..
How to break 4 digit numbers to two parts in java : Help me how to break 4 digit numbers to two parts (2 digits and 2 digits) in java
On what did spain spend its riches from world 16-17centuries : On what did Spain spend its riches from the new world in the sixteenth and seventeenth centuries? In the emerging world of national, secular states, why were the efforts of Charles I (V) and Philip II to create a great western Christian empire doomed..
What percentage must materials cost be reduced to achieve : The sellings price is $200. The company wishes to achieve a 5% increase in total factor productivity by reducing the materials cost only ( with labor cost and other remaining constant.) By what percentage must materials cost be reduced to achieve ..
Define the pressure : If the partial pressure of water vapor is 47 mm Hg in the lungs at 760 mm Hg pressure, what percentage of air does the water vapor constitue

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  What is the average cost of producing

How much profit does an individual producer make in a month? Is this a long-run equilibrium? If the answer is yes, simply state that it is a long-run equilibrium. If the answer is no, explain whether or not the equilibrium price will rise or fa..

  Illustrate what are the reporting reasons on why gasoline

Illustrate what are the reporting reasons on why gasoline prices have been fluctuating and trending upward for the past 12 months.

  Illustrate what are the positives and negatives

Who benefits from a tariff or quota. Illustrate what are the positives and negatives of protectionist trade policies on the federal government's part. Which policy is best right now.

  What is the difference among nominal and real quantities

Illustrate what is the difference among nominal and real quantities and why make the distinction.

  Gdp based question

Suppose Corporation X deposits $80,000.00 in cash in commercial bank Y. If no excess reserves exist at the time this deposit is made and the reserve ratio is 30%,

  Present day which are the result of government policies

Is it possible that the levels of unemployment present day which are the result of government policies.

  Construct a model of irrational behavior

Economists are often criticized for making assumptions. Explain why are assumptions necessary? To think about this, you might consider an assumption that is often made,

  Illustrate the principle of increasing opportunity cost

The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve.

  Costs and diminishing marginal returns

Use the following Information on a hypothetical short-run production function to answer questions a-c. Calculate the marginal and average variable product of each unit of labour input.

  What would happen to autonomous consumption

What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period What would happen to autonomous consumption if real wealth increased and expectations of the future became more optimistic

  Computing profit maximizing output level

Assume that the total cost function for a single firm in a purely competitive industry is given by following equation:

  Banking and monetary policy

Primary purpose of the legal reserve requirement is to provide a means by which the monetary authorities can influence the lending ability of commercial banks - Exam: 050475RR - MONEY, BANKING AND MONETARY POLICY

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