Calculate the equal amounts of capital and labor, Managerial Economics

Assignment Help:

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.

 


Related Discussions:- Calculate the equal amounts of capital and labor

Show normal profit equilibrium, Q. Show Normal profit equilibrium? Nor...

Q. Show Normal profit equilibrium? Normal Profits: With the condition of  MC = MR and MC cuts the MR from below, if E is the point of stable equilibrium, output of firm is OM

Stagflation, STAGFLATION The term stagflation is a recent arrival in ec...

STAGFLATION The term stagflation is a recent arrival in economic literature derived from joining together the stage of stagnation and flections of inflation. The term has been

Classical view on unemployment, CLASSICAL VIEW ON UNEMPLOYMENT The cla...

CLASSICAL VIEW ON UNEMPLOYMENT The classical economists as we observed in Unit 1 of this course, were of the view that full employment prevailed  in  the  economy  all the tim

Types of price elasticity of demand, Types of Price Elasticity of demand ...

Types of Price Elasticity of demand   a)     Perfectly inelastic demand Demand is said to be perfectly inelastic if changes in price have no the quantity demanded so

Scarcity and oppurtunity cost, define scarcity and oppurtunity cost.show ho...

define scarcity and oppurtunity cost.show how these concepts are useful in managerial decision making

Maximizing profit in firm, how does knowledge of economics help in maximizi...

how does knowledge of economics help in maximizing profit in firm

Manaerial economics, define scarcityand oppurtunity cost.show how these con...

define scarcityand oppurtunity cost.show how these concepts are useful in managerial decision making

Isoquant analysis, ISOQUANT ANALYSIS In the long run it is possible fo...

ISOQUANT ANALYSIS In the long run it is possible for a firm to produce the same output using different combinations of two factors of production.  For instance it the two fact

Explain the dilemma of the monetary agent, Problem 1: (a) Distinguish ...

Problem 1: (a) Distinguish between political and partisan monetary cycles on inflation and unemployment rates. (b) In the rule versus discretion literature, explain how dy

Write Your Message!

Captcha
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