Thursday
March 5, 2015

Homework Help: Microeconomics

Posted by Hannah Wannans on Tuesday, March 26, 2013 at 8:40pm.

Zuppann, Inc. has just completed a study of its production process for gadgets. It uses labor and capital to produce gadgets. It has determined that 1 more unit of labor would increase output by 200 gadgets. However an additional unit of capital would increase output by 150 gadgets. If the current price of capital is $10 and the current price of labor is $25, is the firm employing the optimal input bundle for its current output? Why or why not? If not, which input’s usage should be increased?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - The chapter is on Production and costs in thelong run, we are given ...
Math - If a large factory sells its new gadgets for $5 each it can sell 1050 per...
Math - A large factory knows that if it sells it's new gadgets for $10 each, it ...
Math - The equation y = 240x + 720 gives the cost y (in dollars) when x gadgets ...
Economics (PPFs) - Society has 20 units of capital and 20 units of labor. The ...
Economics - In an economy where a unit of labour can produce either 1 unit of x ...
Economics - Hopefully someone can help me with this. "Suppose the production of ...
Calculus - "The production amount, Q, of an item manufactured by a company is ...
College microeconomics - Need some help with these questions....Thanks in ...
Calculus - We're doing optimization problems and this is one that I am having ...

Members