Calculate the equal amounts of capital and labor, Managerial Economics

The production function of the personal computers for DISK Company is given by

Q = 10 KL

where Q is the number of computers produced per day, K s the hours of machine time, and L is hours of labor input. Disk's competitor, FLOPPY Company is using the production function

Q = 10 K.6 L.4.

a) If both companies use equal amounts of capital and labor, which will generate more output?

b) Assume that capital is 9 machine hours, but labor is unlimited in supply. In which company is the marginal product of labor the greater? Explain.

 

Posted Date: 4/1/2013 6:15:15 AM | Location : United States







Related Discussions:- Calculate the equal amounts of capital and labor, Assignment Help, Ask Question on Calculate the equal amounts of capital and labor, Get Answer, Expert's Help, Calculate the equal amounts of capital and labor Discussions

Write discussion on Calculate the equal amounts of capital and labor
Your posts are moderated
Related Questions
Characteristics of Money Over time, therefore, it became clear that for an item to act as money it must possess the following characteristics. Acceptability If

Q. Example on Relationship between marginal and average cost? This relationship between marginal and average cost can easily be recalled with the aid of Fig. below. It can be s

MONEY MARKETS The expression "money markets" is used to refer to the set of institutions and individuals who are engaged in the borrowing and lending of large sums of money

Describe and answer in economic terms a managerial decision you have knowledge about (for example one that has to be made at your place of employment). Some examples of decisions a

Q. What is the Nature of Commodity ? The nature of a commodity as well has an effect on the price elasticity of its demand. Commodities can be characterised ascomforts, luxurie

Suppose a given demand curve for massage therapy services. In the context of giving massage therapy services, list, and explain in detail, 5 different variables that may cause an i

Explain the short-run production function with one variable input with the help of assumed figures. Clearly indicate the three stages of physical product, using table and graphs.

Air Canada and KLM compete for customers on flights among Amsterdam and Toronto. The total number of passengers (Q) flown by these two firms is the sum of passengers who fly KLM, Q

Question 1: (a) Describe the argument that market entry erodes profits in the long run. (b) Give some reasons and discuss possible strategies used for profits to persist eve

Assumptions of Monopolistic Competition Monopolistic competition as the name implies, combines features from both perfect competition and monopoly.  It has the following featu