8. Consider Meera's ice-cream shop with: Marginal Product of Capital: 6000 scoops/ice-cream maker Marginal Product of Labour: Wage rate: Rental rate of ice-cream maker $500/week Is Meera's ice-cream shop in producer's equilibrium? What is the condition you used to make this decision? Is she minimizing costs? If the shop is not in producer's equilibrium, what must Meera do to minimize costs and reach producer's equilibrium? 4000 scoops/worker $400/week

8. Consider Meera's ice-cream shop with: Marginal Product of Capital: 6000 scoops/ice-cream maker Marginal Product of Labour: Wage rate: Rental rate of ice-cream maker $500/week Is Meera's ice-cream shop in producer's equilibrium? What is the condition you used to make this decision? Is she minimizing costs? If the shop is not in producer's equilibrium, what must Meera do to minimize costs and reach producer's equilibrium? 4000 scoops/worker $400/week

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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