Determine the cost minimizing capital labour ratio, Microeconomics

Assignment Help:

The production function for (a Music company ) their CDs is q= 25*K*L , where q is the number of CDs produced each month, K is the hours of equipment used, and L is the hours of labour. The marginal products of labour and capital are 25K and 25L respectively. Workers are paid $8 per hour and the equipment rental rate is $8 per hour.

a)      Determine the cost-minimizing capital-labour ratio for this firm.

b)      How much does it cost to produce 10000 CDs?

c)      Suppose that the rental rate decreases to $6 per hour. What is the new cost-minimizing capital-labour ratio?


Related Discussions:- Determine the cost minimizing capital labour ratio

Hicksian demand function, having utility function U(x,y)= x1/2=y1/2, determ...

having utility function U(x,y)= x1/2=y1/2, determine the hicksian demand function, expenditure function and indirect utility function.

Non-tradable, Non-Tradable:Some products can't be transported over long dis...

Non-Tradable:Some products can't be transported over long distances or otherwise sold to consumers from far-off locations. These products (including some goods as well as most serv

Why the productivity growth slowdown of america in 1973, The Productivity G...

The Productivity Growth Slowdown However in 1973 steady trend of climbing rates of productivity growth stopped cold. Between 1973 and 1995 measured growth in output per worker

Homework trouble, a curve on a graph shows the relationship between apartme...

a curve on a graph shows the relationship between apartment rent in a town and the quantitiy of apartments that people want at each rent. A new industry enters the town and the pop

Non-existence of objective probability distributions, Non-existence of Obje...

Non-existence of Objective Probability Distributions :   Let us see why expectations are volatile in nature? According to Keynes (1936, pp. 149): "Our knowledge of the fact

Original consumer surplus and original producer surplus, In equilibrium, wh...

In equilibrium, what are the letters and the total dollar amounts that correspond to the area for the... i. Original Consumer Surplus?  ii. Original Producer Surplus? iii.

Expected utility - consumer choice involving risk, Expected Utility: T...

Expected Utility: Theory Assume that a utility index exists which conforms to the five axioms. The expected utility for the two-outcome lottery L = (P, A, B) is given by,

Estimating occupational structure, Estimating Occupational Structure of the...

Estimating Occupational Structure of the Labour Force within Economic Sectors in the Target Year The total output in the economy, the sectoral shares therein and labour produc

Game, Suppose that there are n bidders whose valuations vis are drawn indep...

Suppose that there are n bidders whose valuations vis are drawn independently and identically from the distribution F over [0, ?]. Describe and derive the symmetric , monotonic equ

Write Your Message!

Captcha
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