· How many units of resource Y would the firm employ at a price of $50 per unit of Y? A) 2 B) 3 C) ... 34. Refer to the above table for a profit-maximizing firm. The price of the firm's product is $10 per unit and the wage rate is a constant $110 a day. ... Course Hero member to access this document. Continue to access.
How many units of resource Y would the firm employ at a price of $50 per unit of Y? a. 2 b. 3 c. 4 d. 5
· Resource X can be hired at $50 per unit and resource Y at $20 per unit. The firm: a) should hire more of both X and Y. b) should hire more of Y and less of X. c) is producing with the least-costly combination of X and Y, but could increase its profits by employing more of X and less of Y. d) is using the least-cost combination of X and Y, but could increase its profits by …
If the firm can sell 14 units of output at a price of $1 per unit and 18 units of output at a price of $0.90 per unit, the marginal revenue product of the third unit of the resource would be $2.20 If the firm can sell 8 units at the price of $1.50, 14 units at a price of $1.00, 18 units at a price of $0.90, 21 units at a price of $0.70, and 23 units at a price of $0.50, then the firm is
Assume that the quantities of other resources employed by the firm remain constant.
In the production process, the firm uses various inputs such as labor, capital, and raw materials among others. These inputs are acquired at a cost and for a profit-maximizing firm, the aim is to minimize the input cost.
the marginal revenue product (MRP) exceeds the wage rate.
The marginal resource cost (MRC) is the change in total costs that results from a one-unit increase in the quantity of a factor employed.
a. In 2009 General Motors (GM) announced that it would reduce employment by 21,000 workers. What does this decision reveal about how GM viewed its marginal revenue product (MRP) and marginal resource cost (MRC)?
Therefore, output price is constant. You can determine the output price by noting that when total output = 14, total revenue = $42 . Since Total Revenue = Total Product x Output Price, output price must be $42/14 = $3.
individuals are the sellers of inputs and firms are buyers of inputs.
In general, there are diminishing returns to factors of production. Thus, as workers are added, total product increases but marginal product decreases. Diminishing returns explain why the labor demand curve is downward-sloping.
Marginal product is the change in output (haircuts) by hiring an additional unit of labor (another barber).
The firm should increase the amount of capital used the in its production process because as comparing both the prices of labor and capital, the capital is cheaper than labor and the marginal product of capital is 55 units of output per hour which is more than marginal product of labor. Hence, if firm increases the amount of capital used in its production process its production is increase as comparing to increase in amount of labor.
We know in equilibrium, MPL/PL = MPK/PK, so to get to that situation, starting where MPL/PL > MPK/PK, if the manager changes the product mix, such that manager now chooses more of labour and less of capital, the output production can increase.
a. No - there are no economies of scope.
Instruction: The second response is the exponent on L in the expression. Enter your responses rounded to two decimal places.
a. You cannot determine if there are cost complementarities.
When cost is the same as benefit, contract length should be constant. When cost is more than benefit, contract should be decreased
Ten firms compete in a market to sell product X. The total sales of all firms selling the product are $2,500,000. Ranking the firms' sales from highest to lowest, we find the top four firms' sales to be $415,000, $350,000, $280,000, and $195,000, respectively. Calculate the four-firm concentration ratio in the market for product X.
The industry elasticity of demand for gadgets is −2, while the elasticity of demand for an individual gadget manufacturer's product is −10. Based on the Rothschild approach to measuring market power, we conclude that:
a. First, sum of the three sales = 1,390,000
193,000-65,000 = 128,000 = answer 1. Yes = answer 2. 67,000>55,000. The manager of your company's pension fund is compensated based entirely on fund performance; he earned over $1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000.
So MPL depends on L. The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $36,000 per year. The store is located on prime real estate in a college town.
PART-2. Solution: Yes, Lipitor has a patent-protected monopoly. Explanation: The Lerner index is 0.9, which indicates the firm has considerable market power. This makes sense because the product that the firm sells is currently under patent protection, which essentially makes the firm a legal monopoly.