Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (T) and variable quantities of cement (C) and labor (L). The firm iscurrently paving 1,000 parking spaces. The firm's cost of cement is $4,200.00 per acre covered (c) and its cost of labor is $9.00/hour (w). For the quantities of C andL that the firm has chosen, MPC = 70 and MP = 3.Is this firm minimizing its cost of producing parking spaces?O A. No since MPc does not equal MP,O B. No since w does not equal c.MPLdoes not equalMP.O C. No sinceO D. Yes since MP, xc equals MP, x w.Does the firm need to alter its choices of C and L to decrease cost?O A. Yes, they need to increase C which would cause MP, to increase and MP. to decrease.O B. Yes, they need to increase L which would cause MP, to decrease and MP, to increase.O C. Yes, they need to increase C which would cause MP, to decrease and MP, to increaseO D. Yes, they need to increase L which would cause MP, to increase and MP, to decrease.O E. No, they are producing at the cost minimizing levels of C and L.

Marginal product (MP): - it is the additional units of a product produced by an additional unit of…

Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (T) and variable quantities of cement (C) and labor (L). The firm is currently paving 1,000 parking spaces. The firm's cost of cement is $4,200.00 per acre covered (c) and its cost of labor is $9.00/hour (w). For the quantities of C and L that the firm has chosen, MPC = 70 and MPL = 3. Is this firm minimizing its cost of producing parking spaces? O A. No since MPc does not equal MPL. O B. No since w does not equal c. MP OC. No since MPC does not equal O D. Yes since MPc xc equals MPL x w. Does the firm need to alter its choices of C and L to decrease cost? O A. Yes, they need to increase C which would cause MP, to increase and MPc to decrease. O B. Yes, they need to increase L which would cause MP, to decrease and MP, to increase. O C. Yes, they need to increase C which would cause MP, to decrease and MPc to increase. O D. Yes, they need to increase L which would cause MP to increase and MPc to decrease. O E. No, they are producing at the cost minimizing levels of C and L.

Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (T) and variable quantities of cement (C) and labor (L). The firm is currently paving 1,000 parking spaces. The firm's cost of cement is $4,200.00 per acre covered (c) and its cost of labor is $9.00/hour (w). For the quantities of C and L that the firm has chosen, MPC = 70 and MPL = 3. Is this firm minimizing its cost of producing parking spaces? O A. No since MPc does not equal MPL. O B. No since w does not equal c. MP OC. No since MPC does not equal O D. Yes since MPc xc equals MPL x w. Does the firm need to alter its choices of C and L to decrease cost? O A. Yes, they need to increase C which would cause MP, to increase and MPc to decrease. O B. Yes, they need to increase L which would cause MP, to decrease and MP, to increase. O C. Yes, they need to increase C which would cause MP, to decrease and MPc to increase. O D. Yes, they need to increase L which would cause MP to increase and MPc to decrease. O E. No, they are producing at the cost minimizing levels of C and L.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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