Understanding the least-cost rule

Assignment Help Business Management
Reference no: EM131258547

Understanding the least-cost rule

Andrew runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he rents from a local shop for $10 per day, and surfing instructors, whom he hires for $50 per day. Andrew has figured out that the marginal physical product (MPP) of the last instructor hired is 15 lessons, and the MPP of the last board used is 2 lessons. Which of the following statements is correct?

1. Andrew could lower his costs without reducing his output if he employed more instructors and used fewer surfboards.

2. Any of these answers may be right, depending on the price of a lesson.

3. Andrew currently employs a cost-minimizing combination of surfboards and instructors.

4. Andrew could lower his costs without reducing his output if he employed fewer instructors and used more surfboards.

Reference no: EM131258547

Questions Cloud

Identify the customer key issues : Select a product that you like or a product you use. Design a sales presentation/campaign that introduces an idea for the product, or a better way to promote the product. This section should be a minimum of two pages and include the six suggestion..
What is the percentage of time spent working : A random work sample of operators taken over a 160- hour work month at Tele-Marketing, Inc., has produced the following results. What is the percentage of time spent working?
C programming about pointer and dynamic memory allocation : C Programming about pointer and dynamic memory allocation. Once you have gathered the appropriate information you will need to manipulate the data to hold the data correctly.
Example of when an organization opted to write-off : Share a real world example of when an organization opted to write-off a substantial sunk cost and it was a very good idea. Answer must be a minimum of 400 words and cited references appropriately.
Understanding the least-cost rule : Andrew runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he rents from a local shop for $10 per day, and surfing instructors, whom he hires for $50 per day. Andrew has figured out that the marginal physical pro..
Find the percentage of time bob was working : Find the percentage of time Bob was working. - If you want a confidence level of 95%, and if {3% is an acceptable error, what size should the sample be?
Increase in government budget deficits : What is the effect of an increase in government budget deficits on interest rate?
How consumer buying decisions are heavily influenced : Lamb et al. (2014) explain that the same basic principles of marketing apply to businesses as they do for consumers. However, businesses make buying decisions differently than consumers due to the different characteristics that influence their buy..
What is the total normal time for sharpening one pencil : Sharpening your pencil is an operation that may be divided into eight small elemental motions. - What is the total normal time for sharpening one pencil?

Reviews

Write a Review

Business Management Questions & Answers

  Describe the political and legal systems

Discuss some of the challenges you may face in this new environment. What are the cultural, ethnic, social, and educational characteristics? Describe the political and legal systems. How much does the government intervene in the private sector

  How did this week''s definition of leadership resonate

How could the poor leaders you have worked with in the past (or present) have done a better job?

  Which types of incentive pay are described in this case

Which types of incentive pay are described in this case? Are these based on individual, group, or company performance

  Society regardless of its wealth and power

Every society regardless of its wealth and power must make certain choice s about production and distribution, specifically every society faces three basic economic decisions.

  Manufacturer of expensive luxury automobiles

For years, Ferrari has been known as the manufacturer of expensive luxury automobiles. The company plans to attract the major segment of the car-buying market that purchases medium -priced automobiles.

  Article postmodern worldview

Read the article Postmodern Worldview. You can access the document through the link below: http://www.allaboutworldview.org/postmodern-worldview.htm After reading the materials write a 1-2 page response. Your response should address the following:

  Identify an on going project on kickstarter

Identify an on-going project on kickstarter or indiegogo that you think will be a real success. - be prepared to discuss why you think it will work

  Numeric or currency fields that can be added

1. Design on paper a database for a business purpose.  Describe the database and its purpose in a word document.  Also - in the word document explain each of the parts of the database as listed below.  I can read your explanations as I look at eac..

  Culture language and religion impact costs of doing

culture language and religion impact costs of doing business in foreign marketsq1 show how culture language and

  Identifying practices in corporate governance

Please help me out to identify one best practice in corporate governance from 3or4 different organizations and what makes these best practices?

  Examine both the positive and negative effects

Adiscussion question,Examine both the positive and negative effects that the company in question experienced. Suggest two (2) actions that the company could have taken in order to mitigate the impact of the lawsuit on the company's business operat..

  Distinction between good management and good leadershiphow

distinction between good management and good leadershiphow can someone who is a leader not be a manager?how can someone

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