13. At its current employment level of labor and capital, a firm observes the following. Marginal product of labor = 30 units, Marginal product of capital 60 units, Price of labor $3 per unit and Price of capital = $6 per unit. This fir %3D %3! %3D %3D should * Labor Capital a. Increase Increase b. Increase Decrease c. Decrease Increase d. Decrease Decrease No change No change е. A O c

Q: A MC, (ATP/AL) (ATC, / AL) MP* P Labor Wage TP MP VMP MRP ... $6 200 MP * MR $7 260 Blank 1 $10…

A: Answer: Calculation of table values: Note: since the price is fixed the marginal revenue (MR) will…

Q: 3. Capital (K) 44 60 45 Q= 1,000 60 Labor (L) 240 What is the Marginal Rate of Technical…

A: Identify the coordinates of point A:From the graph, point A has coordinates (Labor, Capital) = (60,…

Q: A firm's production function is: q = 16L1/2K1/3 where q is the firm's hourly total product, L is the…

A: Marginal product of labor (MP) can be calculated as follows.

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A: It can be defined as a tool that helps in showing the relation between the resource's input and the…

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A: Labor Demand Function: A labor demand function represents the relationship between the quantity of…

Q: Question 7 The production function is f(x,x)=x¹²₁x¹2₂ a. In the short run the amount of factor 2…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: A firm is currently hiring capital and labor so that MPL/PL<MPK/PK, if the firm wishes to maximize…

A: Marginal product of an input is the additional output produced by using additional unit of the input

Q: The Paunch Burger restaurant chain currently produces 250,000 units of output by using 2,400 units…

A: Answer -    MRTS (Marginal rate of technical substitution) :- The rate by which one factor need  to…

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A: An isoquant is a curve, which shows the different combinations of two inputs that can be used to…

Q: K 300- 250- 200- 150- 100- 50- 0+ 0 100 200 300 400 Units of labor (hours) Assuming the price of the…

A: Calculate the Marginal Revenue Product (MRP)The MRP is calculated by multiplying the Marginal…

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A: step: 1To find the optimal amount of labor that the firm should hire, we can use the concept of cost…

Q: uppose that the production function is Yt = AtKt^(1/2) Lt^(1/2) where Yt is output, Kt is the stock…

A: Optimal input demand problem: The optimal input demand bundle is such that at that bundle the firm…

Q: The figure shows the total product curve for different levels of a variable input, labor. K A B C D…

A: The figure shows the total product curve for different levels of a variable inputs, labour.

Q: 17. Consider q is output level, K is capital input and L is labour input. In the short run, capital…

A: The production function shows the relationship between input such as land, labor, capital, and…

Q: Consider an economy whose real marginal product of labor MPN is as follows: MPN = A(1000 – 0.2N)…

A: MPN = A (1000 - 0.2N)   -------------&gt; Marginal product of labor NS =500 + 5 (1-t)w…

Q: Labor demand In the long-run:describe what a firm will do when its long-run condition is not met,…

A: The Long Run is defined as a time period when all the factors of production and the costs are…

Q: None

A: Step 1: Understand the ProblemThe firm wants to maximize profit in the short run, given a fixed…

Q: The marginal product of labor is the additional:

A: Marginal product of labour is the change in output that results from employing an added unit of…

Q: 8 Suppose that a firm with ordinary-shaped isoquants and that wants to produce a certain level of…

A: The equilibrium is given by the point : MPn/Pn=MPK/PK  or  MPn / MPk = Pn / Pk

Q: Consider the following production function: q=100L0.80.4 Currently the wage rate (w) is $20.00 and…

A: The production function is the mathematical relationship between different bundles of inputs and the…

Q: Pressed Juicery makes fresh-squeezed juices. The business produces 750 bottles per week with five…

A: Marginal product: Marginal product is the change in total output resulting from the addition of one…

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Q: Which of the following statements is true with regards to the law of diminishing marginal returns…

A: The labor market in the economy determines the equilibrium wage rate and equilibrium employment…

Q: A plant's production function is Q = 2KL. For this production function, MPx = 2L and MPL = 2K. The…

A: Given production function Q=2KL MPk=2L MPl=2K W=4 r=6

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A: Value of Marginal Product of Labor (VMPL) is the addition in a firm's revenue due to an extra hiring…

Q: Suppose that the firm has production function F(L,M) = 4L1/2M1/2 (where L is the number of workers…

A: We have the production function:- F(L,M) = 4(L^0.5)(M^0.5)