Determine what is the firm minimizing costs

Reference no: EM13203533

A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are:
MPL = 20
MPM = 4
Is the firm minimizing costs? If not, what steps should it take to lower costs and still produce the same level of output?

Reference no: EM13203533

Questions Cloud

Calculate the total number of outcomes in the sample space : Calculate the total number of outcomes in the sample space if an experiment has 5 outcomes on the first trial, 4 outcomes on the second trial, 4 outcomes on the third trial, and 6 outcomes on the fourth trial.

What would be the resulting maximum volume : The questions we will answer using optimization are: What dimensions should the box have, and what would be the resulting maximum volume?

What is the size of the population after t hours : A certain bacteria population is known to doubles every 90 minutes. Suppose that there are initially 80 bacteria.

Find the maximum or minimum value of some variable quantity : what is a process in which you find the maximum or minimum value of some variable quantity

Determine what is the firm minimizing costs : A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are: MPL = 20 MPM = 4

Find the distance of the ship from the point a : starting at point A, a ship sails 48km on a bearing of 226°, then turns and sails 15 km on a bearing of 286°. find the distance of the ship from the point A.

How far directly north of site b should a second explosion : The recording devices record the time the sound reaches each one. How far directly north of site B should a second explosion be done so that the measured time difference recorded by the devices is the same as that for the first detonation?

Choose a flat monthly rate and cost per minute : Choose a flat monthly rate and cost per minute and insert the values you have chosen for m and b into the equation. Then use this equation to find the total monthly cost, C, if 79 minutes are used.

Describe how financial intermediaries can overcome : Describe how financial intermediaries can overcome information asymmetries and information costs and how did information asymmetries in the home mortgage market contribute to the financial crisis of 2007-2009?

User Account

All Pages