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
explain critically growth maximisation model of morris ?

Describe the Status goods of law of demand The law doesn't concern the commodities that function as a 'status symbol', add to the social status or exhibit prosperity and opulen

Using the CPS data, set the sample to women only and regress lnwage on education & MARRIED (which is 1 if married and 0 if not) and 1-MARRIED. Give a 95 percent confidence interval

Balance of Payments Perhaps the most immediate reason for bringing in protection is a balance of payment deficit.  If a country had a persistent deficit in its balance of paym

A firm with market power has estimated the following demand function for its product: Q = 12,000 – 4,000 P where P = price per unit and Q = quantity demanded per year. The firm’s t

Concept of Central bank M.H. De Kock concept of central bank is superior to that of others as it is more inclusive. His long definition of central bank includes many of the imp

Q. What do you mean by Legal Monopoly? Legal Monopoly: Some monopolies are engendered and protected under various laws. Inventors of new processes, devices or articles attain

Drafting of Production Policy: Demand forecasts assists in drafting appropriate production policy so that there may not be any space between future demand and supply of a product.