Marginal product theory, Microeconomics

Marginal Product Theory

a.    What is the MC of output in the short-run?

b.    What is the MC of labor (employed)?

c.    What is the short-run profit-maximizing decision with regard to Q? ...with regard to E?

d.    What is the 'marginal benefit of a worker' to the firm, and what is its relation to the 'marginal benefit of output' to firms?

e.    Why does the short-run demand curve have a tilt on the lower end of it? Specifically, why does the price of output change?

f.     What is the long-run profit-maximizing condition for the demand of inputs (labor and capital)?

2.    Question on a Specific Production Function

A firm has the following production function Q(E,K):

287_Marginal Product Theory.png

a. If the firm is maximizing profit in a competitive market for output and inputs, then what are the price of labor (w) and capital (r) at input combination (E,K) = (4.3, 6.41) and a total cost (TC) of $38.58?

b. What is the total output of production in (a)?

Posted Date: 2/23/2013 4:45:56 AM | Location : United States







Related Discussions:- Marginal product theory, Assignment Help, Ask Question on Marginal product theory, Get Answer, Expert's Help, Marginal product theory Discussions

Write discussion on Marginal product theory
Your posts are moderated
Related Questions
Inflation-Unemployment Trade-off under Adaptive Expectations : By the late 1960s, the inverse relation between inflation and unemployment as suggested by the Phillips curve was

using ? tools of economic highlight on comsumption

What are the chemical properties of silicon?

Economic Reforms and Reduction of Regional Disparities: Another important objective of development is to reduce regional disparities. Government has been helping the backward

What is a natural monopoly Define natural monopoly as a situation where the advantages of scale a fixed costs are so high that it is impossible to fully exploit them. MC and AC

Rule of Thumb Method Sir Ashby had been requested in 1960 by the Government of Nigeria to submit a report on manpower development in Nigeria. In doing so, in the absence of re

Q. What is Free Trade Agreements? Free Trade Agreements:It is an agreement between two or more countriesthat eliminates tariffs on trade between the countries, reduces non-tari


Problem: (a) "Economics is the study of how society decides what, how and for whom to produce". Describe the importance of opportunity cost to a society. (b) Distinguish bet

Q. Explain Labour Intensity? Labour Intensity: Ratio of labour effort expended, compared to total on-the-job compensated labour time. A higher ratio of labour intensity reflect