eco

suppose that the marginal product of the last worker employed by a firm is 40 units of output per day and the daily wage that the firm must pay is $20 while the marginal product of the last machine rented by the firm is 120 units of out put per day and the daily rental machine is $30.
a) why is this firm not max. output or min. cost in long run?
b)how can this firm max. output or min. cost in long run?

  1. 👍 0
  2. 👎 0
  3. 👁 506
  1. test

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics

    Suppose that a typical firm in a monopolistically competitive industry faces a demand curve given by: q = 60 - (1/2)p, where q is quantity sold per week. The firm's marginal cost curve is given by: MC = 60. 1. How much will the

  2. Managerial Economics

    Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of $100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000.

  3. Math

    The cost of producing x units of a certain commodity is given by P(x)=1000+ int(MC(s))ds from 0 to x, where P is in dollars and M(x) is marginal cost in dollars per unit. A. Suppose the marginal cost at a production level of 500

  4. Economics

    A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 - Q. Suppose fixed costs rise to $200. What will happen in the market? A.The firm will

  1. algebra

    We did not find results for: suppose a company manufactures MP3 players and sell them to retailers for $98 each. it has a fixed cost of $262,500 related to the production of the MP3 players and the cost per unit is $23 what is the

  2. microeconomics

    Assume that average product for six workers is fifteen. If the marginal product of the seventh worker is eighteen, what is the average product of the seventh worker?

  3. Math/Economics

    Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of

  4. Economy

    Use the following information to answer the question. There are three firms in an economy: X,Y,Z. Firm X buys $200 worth of goods from firm Y, and $300 worth of goods from firm Z, and produces 250 units of output at $4 per unit.

  1. Algebra

    83. Minimizing Marginal Cost The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the 50th product is $6.20, it cost $6.20 to

  2. Economics

    Are these accurate? 2)The manager of All City realtors wants to hire some real estate agents to specialize in selling housing units acquired by the Resolution Trust Commission (RTC) in its attempt to bail out the savings and loan

  3. advanced math

    The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the 50th product is $6.20, it cost $6.20 to increase productionn from 49 to 50

  4. Math/Economics

    Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of

You can view more similar questions or ask a new question.