A manufacturer of toys is employing 50 workers and using 15 pieces of equipment to assemble toys. Currently, themarginal product of labor is 5 $ and the marginal product of capital is 25 S. Assume the market prices for labor andcapital are $12 and $20, respectivelyIs this firm maximizing its profit?A)YesB)NoWhat should this firm do with respect to its employees and its use of equipment?The firm should (1)_ the number of employees and (2)_its use of equipment.(1)A)MaintainB)ReduceC) Increase(2)A)MaintainB)ReduceC)Increase

Profit maximization, output maximization, and cost minimization is the main goal of the firm. Firm…

Answered: A manufacturer of toys is employing 50…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If a firm has an accounting profit it must have an economic profit. True O False
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In 2002 Boeing reduced employment by 33,000 workers due to reduced demand for aircraft. What does this decision reveal about how it viewed its marginal revenue product (MRP) and marginal resource cost (MRC)? Why didn’t Boeing reduce employment by more than 33,000 workers? By less than 33,000 workers?
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Hi! Can you help me with the question below? Northside Social (NS) sells cups of coffee and amazing breakfast sandwiches. The current price of a cup of coffee is $3.00 and the current price of an amazing breakfast sandwich is $8.00. At those prices, NS sells 1000 cups of coffee and 200 breakfast sandwiches daily. NS faces a constant marginal cost for each cup of coffee of 50 cents and the constant marginal cost of breakfast sandwiches is $2. NS increases the price of coffee 5%, to $3.15. After the price increase, NS sells 900 cups of coffee, a decrease of 10% in cups of coffee. Demand for coffee at NS at this price interval is best described as:A) ElasticB) InelasticC) Unitary ElasticD) Perfectly Elastic
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Consider a firm producing Smirnoff Mule which uses two inputs-machines and labor-to produce output (Q). The amount paid to a unit of machine input is called rent; on the other hand, the amount paid to the unit of labor is called the wage rate. If the wage rate is at P500/unit and the rent for the machine is at P1200/unit, given the following table: TABLE 2 Output 0 10 20 30 40 50 60 70 Machine Inputs 30 30 30 30 30 30 30 30 Labor Inputs 60 110 150 210 310 450 630 6. Compute for the firm's TV C, TFC, TC, AV C,AFC, AC, and MC. (Show your formulas).
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