Marginal Product of Labour and Capital
Suppose that Japanese and U.S automakers produce on identical isoquats and that wages are higher in Japan than in the United States. Do autoworkers in Japan have a higher marginal product than American autoworkers?
Cost-Minimizing Input given a change in input prices.
If a firm uses two inputs, capital and labor, to produce 500 units of output. Using isoquant and isocost lines, explain what will happen to the cost minimizing input quantities when the price of capital and labor both increase around 20 percent.
Write a scenario that would cause a shift in labor supply and demand. The following areas have had high job growth rates and can be used for your scenario: transportation, insurance, technology, and health care industries. · Post a 200- to 300-word response that focuses on the following: o What is the area of employment? o ...continues
Profit/loss and break even analysis
Hello, I have the following problem: A manufacturing firm has the capacity to produce 650,000 units of an electronic product per year. At present, it is operating at 65% of capacity yielding the firm’s estimated annual income of $416,000. Annual fixed costs are $192,000 and the variable costs are $0.38 per unit of product. a) ...continues
As a manager of a financial planning business you have two financial planners, Phil and Francis. In an hour, Phil can produce either one financial statement or answer 8 phone calls, while Francis can either produce 2 financial statements or answer 10 phone calls. Does either person have an absolute advantage in producing both pr ...continues
Which of the following cost functions indicates that the law of diminishing returns takes effect as soon as production begins? (A) 1000 + 2.5Q – 0.05 Q2 (B) 1000 + 2.5Q (C) 1000 + 2.5Q – 1.2Q2 + 0.03Q3 (D) None of the above
Q.4 A U.S. importer who owns a Belgian company 500,000 Euros payable 30 days from today expects that U.S. dollars will weaken during this period. What would you advise the importer to do? What would happen if the U.S. dollars were to strengthening during this period? Q.5 A U.S. importer purchases a currency option. If the fo ...continues
Which of the following is not characteristic of perfect competition?
1. Which of the following is not characteristic of perfect competition? A) a differentiated product B) no barriers to entry or exit C) large number of buyers D) complete knowledge of market price 2. Which of the following conditions would definitely cause a perfectly competitive company to shut down in the sho ...continues
Solving for optimal bundle of consumption and leisure
Mike’s utility for consumption and leisure is U(C,L) = C X L, so his marginal rate of substitution between leisure and consumption is C/L. There are 168 hours in the week and he earns $10 per hour. a. What is Mike’s optimal amount of consumption and leisure? b. If the government starts a welfare policy that pays B to all nonwo ...continues
Changes to the long-run demand curve for labour
a. What happens to the long-run demand curve for labour if the demand for the firm's output increases? b. What happens to the long-run demand curve for labour if the price of capital increases?
