Estimate the firm operating efficiently, Managerial Economics

Assignment Help:

Suppose you are an efficient expert hired by a manufacturing firm that uses two inputs, labor (L) and capital (K). The firm produces and sells a given output. You have the following information:

PL = Rs 4, PK = Rs 100, MPL = Rs 4, MPK = Rs 40.

a) Is the firm operating efficiently? Why or Why not?

b) What should the firm do?

Related Discussions:- Estimate the firm operating efficiently

Price discrimination, Let there be two consumers A and B, each buying at mo...

Let there be two consumers A and B, each buying at most two units of a good. A values having one unit at £10 and having two units at £12 whereas B values having one unit at £8 and

Cost Analysis, Michael was discussing the importance of production analysis...

Michael was discussing the importance of production analysis and cost analysis to managerial economics with a final year Open Campus student. The final year student, Catherine, sta

Compettitive market, Tomato Farm is selling tomatoes in a purely competitiv...

Tomato Farm is selling tomatoes in a purely competitive market. Its output is 5000 bushels, which sell for $15 a bushel. At this level of output, the marginal cost is $15 bushel an

Cost parameter, A toy manufacturer makes output according to the production...

A toy manufacturer makes output according to the production function: where n is the number of workers employed by the firm, O is a technological parameter and g the worker

Burden of the national debt, Burden of the national debt The extent of...

Burden of the national debt The extent of the burden on a nation of public debt, depends in the first place on whether it is an external or an internal debt. The burden of th

Question, Q.2. On the basis of the analysis of the case above, what is your...

Q.2. On the basis of the analysis of the case above, what is your opinion about legalizing marijuana in Canada ?mum 100 words accepted#

Improving revenue generation and administration in local gov, theories of r...

theories of revenue generation

Determine the concept of law of demand, Determine the concept of Law of dem...

Determine the concept of Law of demand We have considered numerous factors which fashion the demand for a commodity. As explained the first and most important factor which determ

Methods of demand forecast which rely on quantitative data, Methods which r...

Methods which rely on quantitative data: Rule-based forecasting Data mining Quantitative analogies Discrete event simulation Neural networks Extrapo

Theory of multiplier, income generation process through investment multipli...

income generation process through investment multiplier

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages