Business, 21.02.2020 01:30 funnyadriany4

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $58,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $62,000. Additional workers each cost $4000 per month, while an additional tractor would also cost $4000 per month.

a. What is the marginal product of labor? The marginal product of capital?

MPL = $¬

MPK = $¬

b. What is the ratio of the marginal product of labor to the price of labor (MPL / PL )?

MPL / PL = ¬

What is the ratio of the marginal product of capital to the price of capital (MPK/ PK )?

MPK / PK = ¬

c. Is the firm using the least-costly combination of inputs?
Choose:
1. Yes, because MPK/PK = MPL/PL.
-or-
2. No, because MPK/PK > MPL/PL.

d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent?
Choose:
1. Revenue is increased more by spending money on an additional worker.
-or-
2. Revenue is increased more by spending money on an additional tractor.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 00:50

Cool beans is a locally owned coffee shop that competes with two large coffee chains, planeteuro and frothies. alicia, the owner, hired two students to count the number of customers that entered each of the coffee shops to estimate what percent of people who are interested in coffee are visiting each shop. after a week, the students found the following results: 589 visited cool beans, 839 visited planeteuro, and 1,290 visited frothies. the students were surprised that cool beans had 139 visits on monday which represented 59% of all people who visited one of the three coffee shops on mondays. how many people visited one of the three coffee shops during the week?

Answers: 2

Answer

Business, 22.06.2019 08:00

Compare the sources of consumer credit(there's not just one answer)1. consumers use a prearranged loan using special checks2. consumers use cards with no interest and non -revolving balances3. consumers pay off debt and credit is automatically renewed4. consumers take out a loan with a repayment date and have a specific purposea. travel and entertainment creditb. revolving check creditc. closed-end creditd. revolving credit

Answers: 2

Answer

Business, 22.06.2019 10:10

Rats that received electric shocks were unlikely to develop ulcers if the

Answers: 1

Answer

Business, 22.06.2019 19:00

The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.

Answers: 1

Answer

You know the right answer?

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s...

Questions