A firm is using 500 units of capital and 20O units of labor to produce 10,000 units of output. Capital costs $25 per unit and labor $100 per unit. The last unit of capital added 50 units of output, while the last unit of labor added 20 units of output. The firm а. is using the cost- minimizing combination of capital and labor. b. should use more of both inputs in equal proportions. should use less of both С. inputs in equal proportions. d. level of output at a lower cost by using more capital and less labor. could produce the same could produce the same output at a lower cost by using less capital and more labor. е.

A firm is using 500 units of capital and 20O units of labor to produce 10,000 units of output. Capital costs $25 per unit and labor $100 per unit. The last unit of capital added 50 units of output, while the last unit of labor added 20 units of output. The firm а. is using the cost- minimizing combination of capital and labor. b. should use more of both inputs in equal proportions. should use less of both С. inputs in equal proportions. d. level of output at a lower cost by using more capital and less labor. could produce the same could produce the same output at a lower cost by using less capital and more labor. е.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1. AK.25L.75 A=4 K= 75 L= 76 a. marginal product of capital b. total payments of labor
Give typing answer with explanation and conclusion
The ff are true about economies of scale except one a. It is concept in cost function b. Costs keep on increasing as output increases c. Labor productivity is a major factor d. Exists when long run average costs decline as output expands
Answer questions number 15 and 16 on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed. Number of Units of Workers Output 1 40 2 90 3 126 4 150 165 180 15. Refer to the above data. Average product is at a maximum when: A. five workers are hired. B. four workers are hired. C. three workers are hired. D. two workers are hired. 16. Refer to the above data. Diminishing marginal returns become evident with the addition of the: A. sixth worker. B. fourth worker. C. third worker. D. second worker.
Please solve all parts will upvote. Hand written solution is not allowed.
2. Short Run Production Function and Total Product curve. You will need words, a chart and a graph here. Next, be sure to do the same for average and marginal product of labor. Explain what is going on in your graphs.
During the second stage of the law of diminishing marginal returns: Group of answer choices 1. marginal product and total product are maximum. 2. total product is decreasing. 3. marginal product and average product are decreasing. 4. average product is negative. Which of the following inputs are variable in the long run? Group of answer choices 1. Labor 2. All of the given answers 3. Capital and Equipment 4. Plant Size
1. Relation of A and T curves *3 As the level of production increases in the short-run, the Average Variable Cost (AVC) curve (increases continuously/first decreases and then increases/decreases continuously) and the Average Fixed Cost (AFC) curve (increases continuously/first decreases and then increases/decreases continuously). Increases continuously; decreases continuously. First decreases and then increases; decreases continuously. First decreases and then increases; increases continuously. Decreases continuously; decreases continuously. Increases continuously; first decreases and then increases.
6. The production function at Weedy's Grainery is Q=L¹/4K¹/2. If Weedy increases the scale of his operation from 16 units of labor and 1 unit of capital to 81 units of labor and 4 units of capital, how much does output expand? Does the firm exhibit increasing, decreasing or constant returns to scale? a. Output increases from Q=4 to Q= 36. The firm exhibits increasing returns to scale. b. Output increases from Q=4 to Q= 36. The firm exhibits diminishing returns to scale. c. Output increases from Q=2 to Q= 6. This firm exhibits increasing returns to scale. d. Output increases from Q=2 to Q= 6. This firm exhibits diminishing returns to scale.
Sollve
please quickly!!!!thanks !!!! If a firm used only labor for production, and given current production is 100, average product is 10, marginal product is 15, we can conclude that: A. the firm should produce more in the long run. B. 10 labors are hired at this time. C. Marginal product and average product will eventually intersect at 10. D. Both B and C
Deviations from standard costs can be caused by I. Variations in the per unit cost of labor and/or material II. Variations in the quantity used of labor and/ or material: a. I only. b. II only. c. I and II. d. neither I nor II.