# economics

posted by .

hi

new to economics, and struggling with some of its concepts. got this posed as a homework question, and i have to admit stumped as how to begin.

Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is \$6 and the price of labor is \$2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?

do i start with a total product cure or try and plot the variable and fixed costs.

any guidance would be great

## Similar Questions

1. ### ECONOMICS

Need examples of topics dealing with 2 Economic Concepts.... Meaning .. Like Gas prices .. deals with supply and demand along with goods and services. Which two economic concepts?
2. ### Economics - Cournot Model

There is one firm with a marginal cost of 0. It's monopoly price is 10. Another firm enters, also with zero marginal cost. Using the Cournot model, would would the new oligopoly price be?
3. ### Economics

Yeah, so I'm in urgent need of help with this homework. 1. Assume that in a perfectly competitive market, a firm's costs and revenue are: Marginal cost = average variable cost at \$20 Marginal cost = average total cost at \$30 Marginal …
4. ### economics

Can someone assist me with these two questions. Thanks A perfectly competitive firm's demand is ____________ elastic and equal to ____________ which is equal to ____________. A firm is allocating 16 hours a day on its assembly line …
5. ### Microeconomics

I am on the chapter for the factors of production: Question: A firm that hires two types of workersâ€”some with computer skills and some without. If technology advances so that computers become more useful to the firm, what happens …
6. ### economics

when you are given the units of resource, total product, and marginal product, what do you need to find to determine how many resources the firm will employ, what the MRP would be etc...
7. ### Economics

explain how a firm's production function is related to its marginal product of labor,how a firm's marginal product of labor is related to the value of its marginal product, and how a firm's value of marginal product is related to its …
8. ### Economics

3. Suppose a firm has a constant marginal cost of \$10. The current price of the product is \$25, and at that price, it is estimated that the price elasticity of demand is -3.0. a. Is the charging the optimal price for the product?
9. ### ECONOMICS

Imagine a firm that hires two types of workers: some with computer skills and some without. If technology advances so that computers become more useful to the firm, what happens to the marginal product of the two types of workers?
10. ### Economics

Suppose that a firm determines that its marginal revenue is greater than its marginal cost, it would better to

More Similar Questions