Why the output remains constant and cost decreases

Assignment Help Econometrics
Reference no: EM13212429

A producer currently hires 20 units of labor and 6 units of capital. The price per unit of labor is $10, the price per unit of capital is $2, and the marginal products of labor and capital are both equal to 20. If the producer increases labor by one unit and decreases capital by 1 unit, cost remains constant and output increases by 20 units. cost remains constant and output decreases by 20 units. output remains constant and cost increases by $8. output remains constant and cost decreases by $8.

Reference no: EM13212429

Questions Cloud

Calculate the work input during this process : During the process, heat is transferred from the air such that the temperature inside the cylinder remains constant. calculate the work input during this process. R(air)=287j/KgK
Define the uranium is incorporated in the rock : Geologist can estimate the age of rocks by their uranium-238 content. The uranium is incorporated in the rock as it hardens and then decays with first-order kinetics and a half-life
Determine the elevation difference : the manometer shown above in problem 1 above contains water and kerosene. with both tubes open to the atmosphere, the free surface elevations differ by H=20mm determine the elevation difference when a pressure of 98.0 Pa is applied to the right.
What is the actual mechanical advantage of the system : A first class lever in static equilibruim has a 50 lb resistance force and 15 lb effort force. The lever's effort force is located 4 ft from the fulcrum. What is the actual mechanical advantage of the system?
Why the output remains constant and cost decreases : A producer currently hires 20 units of labor and 6 units of capital. The price per unit of labor is $10, the price per unit of capital is $2, and the marginal products of labor and capital are both equal to 20. If the producer increases labor by o..
What is the maximum pressure this unit can withstand : a power unit has a power rating of 30 kw and supplies flow at a rate of 60 lpm, what is the maximum pressure this unit can withstand?
Explain analyze run-off water for the presence : analyze run-off water for the presence of a.) heavy metals; b.) BTX( Benzene-toluene-xylenes); and c.) PNA ( polynuclear aromatic compounds).
Use potential flow theory to determine the lift coefficient : Use potential flow theory to determine the lift coefficient of a spinning baseball in terms of the forward velocity (V ) and spin RPM.
How to get the holding period return : How to get the holding period return for a $980 selling security that purchased fiver years before at $798? Prove that this return overstates the annualized, compound return.

Reviews

Write a Review

Econometrics Questions & Answers

  How many caps could be sold at 12 dollar each

The following function describes the demand condition for a company that makes caps featuring names of college and professional teams in a variety of sports. Q = 2,000 - 100 P where Q is cap sales and P is price. a) How many caps could be sold at $..

  Compute how many firms can efficiently serve the market

Assuming that the demand is D(P) = 100 - 2P. The regulator chooses average cost pricing. Compute how many firms can efficiently serve the market and the total amount Q produced. (Hint: It suffices to compute the price at the efficient production l..

  If the marr is given,which alternative should be selected

A firm is considering two alternatives that have no salvage value. A Initial Cost $10,700 Uniform Annual Benefits 2,100 Useful life, in years 8 B Initial Cost $5,500 Uniform Annual Benefits 1,800 Useful life, in years 4

  How much to invest in family vehical

In order to have money available for replacing their family vehicle, a couple planned to have $220,000 available in 10 years by investing. If they plan to increase their savings by 10% each year, how much must they invest in year 1 if they expect ..

  Why is the stackelberg equilibrium not chosen

selects its own output q2. Output is homogeneous across firms and satisfies the industry inverse demand function P = 200 - q1 - q2. Both firms have zero fixed costs and total costs of Ci(qi) = 60qi. Compute the Cournot-Nash equilibrium outputs and ..

  Filed for bankruptcy

In late 1990s more than twenty-five domestic steel firms have filed for bankruptcy. A combination of low values with strong competition through foreign competitors and so-called legacy expenses of unions are cited as the primary reason why so many s..

  How much time would it take the two to complete the project

Gary and Diane must prepare a presentation for their marketing class. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the required calculation and 10 hours to..

  How long must the treated version last to be the preferred

A low-carbon-steel machine part, operating in a corrosive atmosphere lasts 6 yeras, and costs $350. If the part is first treated for corrosion resistance, it will cost $500 part ($150 more than just the part with no treatment) but lasts longer.

  What is the value of call option using black-scholes model

An analyst wants to use the Black-Scholes model to value call options on the stock of Ledbetter Inc. based on the following data: The price of the stock is $40. The strike price of the option is $40. The option matures in 3 months (t = 0.25).

  Determine if the project is acceptable or not

Consider a project that requires an initial investment with the following patterns of cash flow. n 0 1 2 3 4 5 Receipt $0 500 500 500 500 500 Disbursement $1000 100 140 180 220 260a) Compute the net cash flow and show it in a table or diagram.

  How much need to set aside at end of each of next five years

save the down payment required to purchase a vacation home at the end of five years.if the required down payment is $25,000 and you can earn 5% year on your saving account how much do you need to set aside at the end of each of the next five years

  When the economy experiences inflation

Nominal GDP uses current prices as a measure of the value of goods and services produced, while real GDP uses prices of goods and services in a base year to measure value. Suppose an economy consists of three goods: pizza, sodas, and televisions.

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