A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $6 per hour and capital is rented at $12 per hour. If the marginal product of labor is 50 units of output per hour and the marginal product of capital is 75 units of output per hour. is the firm using the cost minimizing combination of labor and capital?
“The cost of mobile phones have fallen to such a level which, if this trend continues, would make mobile telephony more affordable to much larger segments of the emerging markets population”. Discuss
August 7, 2017Address at least three issues the company will likely face.
August 7, 2017A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $6 per hour and capital is rented at $12 per hour. If the marginal product of labor is 50 units of output per hour and the marginal product of capital is 75 units of output per hour. is the firm using the cost minimizing combination of labor and capital?
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $6 per hour and capital is rented at $12 per hour. If the marginal product of labor is 50 units of output per hour and the marginal product of capital is 75 units of output per hour. is the firm using the cost minimizing combination of labor and capital? if not, should the firm increase or decrease the amount of capital used in its production process?
