Calculating number of units produced by firm

Assignment Help Econometrics
Reference no: EM1375897

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital. The "wage" of capital and labor are $50 and $300 respectively.

a. How many units will the firm be producing?
b. If the marginal product of capital is 500 while that for labor is 1000, what would you suggest about the current mix of labor and capital?
c. Would you suggest this firm merge with similar firms? Explain.

 

Reference no: EM1375897

Questions Cloud

Question about mobile commerce : M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.
Find out the break-even point for each range : Find out the break-even point for each range. If estimated Demand is 90 to 120 customers per day, elucidate how many machines should be purchased.
Find out the one-step-ahead forecasts for february : Find out the one-step-ahead forecasts for February through May using Exponential smoothing with a smoothing constant of α = 0.15. Repeat the calculation.
Why is it necessary to compute the earned value of work : Why is it necessary to compute the earned value of work performed Why is it necessary to track actual also committed costs once a project starts.
Calculating number of units produced by firm : Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.
Illustrate what is the crossover point for these processes : The new process would have fixed costs of $90,000 also variable costs of $5. Illustrate what is the crossover point for these processes.
Elucidate how can we keep the stereotypes : Elucidate how can we keep the stereotypes we have from interfering with the way we work in team projects. Identify TWO specific things you could do to help prevent stereotypes from inhibiting effective team relationships.
Elucidate how many engines harley load onto each truck : Elucidate how many engines should Harley load onto each truck. Illustrate what is the cycle inventory of engines at Harley.
Elucidate how many cans of cat food should cli order : LI uses the economic order quantity as their fixed order size. Suppose the opportunity cost of capital also all other inventory cost is 15percent annually also that there 50 weeks in a yr. Elucidate how many cans of cat food should CLI order at a ..

Reviews

Write a Review

 

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

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