Computing optimal amount of capital and labor, Microeconomics

+44 141 628 6080
[email protected]

Computing optimal amount of capital and labor

Imagine long run production for the firm is indicated by: Q=f(k,e) where: MPe=k-150 MPk=E-60

In addition, assume the firm's isocost equation is given by: C=wE+rK Where C=$240,000 r=$600 w=$800

1) Calculate the firm's optimal amount of capital and labor.

2) Suppose wages fall to w=$500. Calculate the firm's optimal amount of capital and labor in this case.

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Computing optimal amount of capital and labor

Reference No:- TGS037486

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Microeconomics

Q : Advantages-disadvantages of entering international markets

Recognize a few possible advantages and disadvantages of entering international markets. Show the influence of e-commerce on marketing functions.

Q : Describing inverse demand function

Consider manufacturer with two factories. They can produce at either factory or both. But, we need to consider the quantities that will be produced at each factory. The firm can sell its products in Milwaukee and Madison.

Q : Optimal level of output

Finally, assume once again that MCl=$20 and P=$50 but that labor productivity (i.e. output per labor-hour) is expected to increase by 25 percent over the next five years. What effect would this have on the firm's optimal output? Explain.

Q : Differentiate one price and flexible price policies

Explain how the understanding of adoption process (adoption curve) would aid you create promotional blend for a new consumer electronic product.

Q : Computing optimal amount of capital and labor

Compute the firm's optimal amount of capital and labor. Suppose wages fall to w=$500. Calculate the firm's optimal amount of capital and labor in this case.

Q : Create list of significant security issues in ecommerce

Create a list of significant security issues in ecommerce and prioritize them and explain your answer. Examples are: Physical security, Encryption, etc.

Q : Marginal product of labor

Assume capital is fixed at 16 units. If the firm can sell its output at price of $100 per unit and can hire labor at $25 per unit, how many units of labor should the firm hire in order to maximize profits?

Q : Create document theme and enter text in presentation

Choose a document theme and then enter text, illustrations, and tables; Open the existing presentation and alter slides and theme.

Q : Information about resource allocation

Enpar manufactures a single type of engine part for an automotive manufacturer. It operates two plants, A and B. Assume that total steel availability is 40 units. What is the optimal allocation between the two plants?

1935832

Questions
Asked

3,689

Active Tutors

1449444

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Computing optimal amount of capital and labor

Reference No:- TGS037486

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Advantages-disadvantages of entering international markets

Q : Describing inverse demand function

Q : Optimal level of output

Q : Differentiate one price and flexible price policies

Q : Computing optimal amount of capital and labor

Q : Create list of significant security issues in ecommerce

Q : Marginal product of labor

Q : Create document theme and enter text in presentation

Q : Information about resource allocation

Understanding that most employment in america is at will

Do todays policymakers truly represent the general public

How practitioner is engaging in advocacy training

Is our society more accepting of some immigrant groups

How local planning process impact economic development

How amendments provides freedoms

Describe how supreme court has identified and interpreted

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Computing optimal amount of capital and labor

Reference No:- TGS037486

Recent Questions Asked Microeconomics

Q : Advantages-disadvantages of entering international markets

Q : Describing inverse demand function

Q : Optimal level of output

Q : Differentiate one price and flexible price policies

Q : Computing optimal amount of capital and labor

Q : Create list of significant security issues in ecommerce

Q : Marginal product of labor

Q : Create document theme and enter text in presentation

Q : Information about resource allocation

Asked Questions