Answer:
Cost minimization occurs when Marginal Product of Cement / Price of Cement = Marginal Product of Labor / Price of Labor.
Costs are minimized when the marginal product per dollar spent on all inputs is the same.
a.) Using the equation above, 50 / $4000 = 4 / $12
0.0125 = .333333 which is NOT equal. Therefore, the firm is not minimizing its cost of producing parking spaces. This is because the marginal products per dollar spent on inputs is not the same.
b.) Since the firm is not cost-minimizing, the firm must either choose quantities of C and L that make the marginal products per dollar equal. This can be done several ways, but for a concrete example, the firm can choose a quantity of C that will increase the MPC to $1,333.33. Then MPC / Price of C = 1,333.33 / $4,000 = 0.3333333 which would be equal to MPL / Price of L.
You can also decrease the MPL to meet 0.15. Then MPL / Price of L = 0.15 / $12 = 0.0125 which would be equal to MPC / Price of C.
Explanation:
When pressure on the mantle is released as it is forced up through the crust due to subduction, it becomes basaltic magma. The Columbia River has eroded deep into the lava flows of the Columbia Plateau, revealing layers of columnar jointed basalt
b. high literacy rate and low standard of living
Could u please restate the question u r asking? sorry im having trouble understanding what you are asking?
If Lyle is concerned about the difference between a company's salaries for its white workers and its Colombian workers, he can place economic pressure on the company by convincing a large number of consumers not to do business with the company by highlighting his findings and creating negative publicity. This strategy is also known as a “boycott”.
If Lyle is a worker for this company he could also, on his own or with assistance from his coworkers, place economic pressure on the company by going on strike citing payment inequalities due to race and/or suing the company.
