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Suppose that there is a fixed sum of money available to be spent on public projects, and that a large number of public projects have been evaluated using social cost-benefit analysis. Assume that all projects are continuously variable in size. It follows that the budget should be allocated in a manner which ensures the marginal social benefit from the last dollar spent on each project should equal its marginal social cost.
Required:
Define Marginal Social Cost.
what is objective
A firm is employing 100 hours of labor and 50 tons of cement to produce 500 blocks. Labor costs Rs 4 per hour and cement costs Rs 12 per ton. For the quantities employed MPL = 3 an
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Q=5K0.4 L0.6 WHERE K is number of mchine,L s number of labour, price of unit is RM24 & wages og each lanour rm12. the company constraint by it budget rm 1500 per time period. a) co
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