What happen if marginal product of labor minimizing cost

Assignment Help Business Economics

Reference no: EM1354291

A firm uses two inputs, labor and capital. The price of capital is $5 per unit; the price of labor is $7 per unit; and the marginal product of capital is $15.

a. What happen is the firm minimizing cost if the marginal product of labor is 20? Why or why not?

b. What happen if the firm is not minimizing cost, should it use more or less labor relative to capital? Why?

c. What happen if the marginal product of labor is 23, is the firm minimizing cost? Why or why not?

d. What happen if the marginal product of labor is 21, is the firm minimizing cost? Why or why not?

Reference no: EM1354291

Questions Cloud

Elucidate is demand curve is horizontal : In which of these instances is demand said to be perfectly inelastic. Elucidate is demand curve is horizontal.

Find company cost of common equity : Firm x has a target capital structure of 40% debt and 60 percent common equity, with no preferred stock. The yield to maturity on the firm's outstanding bonds is 9.96%.

Define the difference among prior or posterior probabilities : Explain the difference between prior and posterior probabilities and What is the purpose of Bayesian analysis and Describe how you would use Bayesian analysis in the decision-making process

Third standard-audit field work : What is the purpose of engagement planning? What critical information should the auditor consider during engagement planning? How will this information affect the scope of the audit?

What happen if marginal product of labor minimizing cost : What happen if the marginal product of labor is 23, is the firm minimizing cost. What happen if the marginal product of labor is 21, is the firm minimizing cost.

Developing audit model : Create your own design audit model that you may use to determine the extent to which your organization participates in design-principled practices. Write a analysis based on your audit findings, which include recommendations for improvement.

Traumatic injury of brain : Test Findings: Low-average IQ (82), long-term memory(76%); high-average short-term memory (112). Cognitive functions are mildly impaired and strongly lateralized to the right hemisphere. No significant problems with emotional adjustment.

How is this different in science : An underwater diver sees the sun 58 above horizontal. How high is the sun above horizon to a fisherman in a boat above the diver.

Audit documentation guidelines from pcaob : Based on the audit documentation guidelines from the PCAOB, discuss whether or not you believe these guidelines are adequate to protect a certified public accountant from a lawsuit that may be filed by shareholders of a company.

User Account

All Pages