Does the marginal product of labor measure how output changes as the wage rate changes, or is it the average product of labor divided by the quantity of capital stock and can it be negative or is it any two of the above? If so which ones? If a company is using a single variable input (labor) and a given amount of a single fixe
The hourly wage rate is $6, the hourly rentail rate for capital is $8. The production function I found to be q=10K^.5L^.5 The captital if fixed at 225 hours in the short-run. I am trying to figure out how much output can be produced with 400 hours of labor? I would just plug in numbers but I dont know the relevance the $6 and t
Here is a problem that I'm trying to solve: No reaction will result in the monthly demand and marginal revenue functions: P = $150-$0.1Q MR = $150-$0.2Q A major reaction will lead to the more elastic curves: P = $130-$0.4Q MR = $130-$0.8Q The total monthly cost for marketing this product is composed of $3000
The following table was calculated for an aluminum ingot producer. The table below illustrates the firm's daily short run production function along with the cost of 10 units of capital. The variable costs include only the cost of labour, and each worker is paid $200 each day. a) Calculate the marginal product of labour. b. C
A firm has a technology described by the production function: q = 2.5 L1/4K1/2 where L is the number of labor units per period and K is the number of square feet of floor space and machines per period, and q represents firm output. The firm faces the following output and input prices on the market, and these are f
Please show work: The use of unit-based cost drivers has the following consequences: (a) simple products are undercosted (b) complex products are overcosted (c) (a) and (b) (d) none of the above. Please provide the correct answer.
Questions on cost and production functions
Use the Implicit Function Theorem to derive an equation for the slope of the isoquant associated with this production function.