Soft Drink Bottling Data Total Product Labor Capital 245 250 30 240 270 34 300 300 44 320 320 50 390 350 70 440 400 76 520 440 84 520 440 86 580 450 104 600 460 110 600 460 116 log(TP) log(L) log(K) 2.389166084 2.397940009 1.477121255 2.380211242 2.431363764 1.531478917 2.477121255 2.477121255 1.643
Please give a short explaination of why the problem is true or false. a. A firm maximizes its profit at the break even point. Break even point is the point where marginal revenue equals zero. True or false, explain. b. Firms advertise in order to change price elasticity of demand for their products. However, the higher el
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
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