Step 2: Use the slope to find the y-intercept. Line is parallel so use m = 2/5. 6. Findthe equation of a line passing through the point (8, –9) perpendicular to the line 3x + 8y = 4.

8 0

3 years ago

Suppose a firm is producing 2,475 units of output by hiring 50 workers (W = $20 per hour) and 25 units of capital (R = $10 per h

Neko [114]

Answer

given,

firm is producing = 2,475 units

output by hiring 50 workers W = $20 per hour

25 units of capital R = $10 per hour

marginal product of labor = 40

marginal product of capital = 25

$\dfrac{MP_l}{MP_c}=\dfrac{40}{25}$

$\dfrac{MP_l}{MP_c}=\dfrac{8}{5}$

$\dfrac{W}{R}=\dfrac{20}{10}$

$\dfrac{W}{R}=2$

$\dfrac{MP_l}{MP_c} < \dfrac{W}{R}$

Firm is not minimizing the cost because the firm use more capital and less labor.

3 0

3 years ago