Is this firm producing at minimum cost

Assignment Help Econometrics

Reference no: EM131323703

A bottling company uses two inputs to produce bottles of the soft drink Sludge: bottling machines (K) and workers (L). The isoquants have the usual smooth shape. The machine costs $1,000 per day to run: the workers earn $200 per day. At the current level of production, the marginal product of the machine is an additional 200 bottles per day, and the marginal product of labor is 50 more bottles per day. Is this firm producing at minimum cost? If it is minimizing cost, explain why. If it is not minimizing cost, explain how the firm should change the ratio of inputs it uses to lower its cost.

Reference no: EM131323703

Questions Cloud

Finish the two cash flow analyses : Finish the two cash flow analyses through year 2025 on the basis of the Status Quo and from Investing in the Paywalls Model.

Temperature of the calorimeter : When .0430 mole of titanium is combusted in a bomb calorimeter, the temperature of the calorimeter increases from 30.00degress Celsius to 91.60 degrees Celsius. In a separate experiment, the heat capacity of the calorimeter is measured to be 9.84k..

What production function is used : What production function is used? What is the cost function? What can you conclude about shipping costs if it is less expensive to produce baseballs in Costa Rica than in Georgia?

Koh solution for complete neutralization : A 0.6745 gram sample of KHP reacts with 41.75 mL of KOH solution for complete neutralization. What is the molarity of the KOH solution? (Molecular weight of KHP = 204 g/mol. KHP has one acidic hydrogen.)

Is this firm producing at minimum cost : Is this firm producing at minimum cost? If it is minimizing cost, explain why. If it is not minimizing cost, explain how the firm should change the ratio of inputs it uses to lower its cost.

Describe the leadership teams reaction to the failure : HSA 520: Analyze the leadership team's reaction to the failure, and indicate whether the leadership took sufficient measures to deal with various stakeholder groups impacted by the failure.

Develop a full-sentence outline of your research topic : Develop a full-sentence outline of your research topic, taking care to structure your thoughts on the topic in a coherent fashion that clearly illustrates your objectives and intentions.Your full sentence outline should identify your thesis stateme..

What is the essence of the new ruling : Create the journal entry or entries to show the proper recording of revenue - Create the subsequent journal entry to show spending of the funds.

What is her opportunity cost of going to the aquarium : That trip would cost $50, but she would be willing to pay up to $100. What is her opportunity cost of going to the aquarium?

User Account

All Pages