Assume a firm is producing 1000 units of a good by using two inputs, capital and labor, whose per unit prices are $50 and $20. Assume also that the marginal physical product of the last unit of capital is 25 and the marginal physical product of the last unit of labor is 15. In order to minimize its costs of production, the firm should adjust its combination of inputs by employing more labor and less capital.
91) Economists describe short-run decisions as "constrained" decisions, while long-run decisions are described as "planning" decisions. Referring to a firm's short-run average cost function and long-run average cost function, explain this distinction.
92) What are the two primary factors that influence a firm manager's choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager's choice.
93) Explain why X-inefficiency is likely to be more prevalent in an industry in which firms have market power.
94) Explain how labor resistance and political and legislative influences reduce the ability of firms to minimize their costs of production. What do the two have in common in this regard?
95) Historically, empirical evidence showed that it was more cost effective to have a single generator of electricity serve a particular region's electricity needs than to have several smaller units compete against each other. More recently, technological advances have occurred in the generation of electricity that allow much smaller generating units to produce electricity for the same average cost as much larger units. Explain how this change would be reflected in the firm's long-run average cost curve and minimum efficient scale.
Which of the following decision-making models emphasizes short-run solution of a problem rather than long-term goal accomplishment?[A] Rational model[B] Incremental model...Nov 27 2017
What types of events are typically seen in the fossil record? (A) Speciation (B) Successive change in structures (C) Extinction (D) All of these are typical of th...Mar 19 2018
A sole proprietorship had the following assets and liabilities at the beginning and end of this year.Assets LiabilitiesBeginning of the ...Jul 20 2020
Cullumber Company’s trial balance at December 31 shows Supplies $8,800 and Supplies Expense $0. On December 31, there are $2,100 of supplies on hand.Prepare the adjusting...Sep 14 2020
Discuss the purpose and importance of financial ratios and financial analysis What are the limitations of financial ratio analysis? If we divided the users of financial r...Mar 24 2020
As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will probabl...Dec 14 2019
A combinational circuit that converts binary information from n input lines to a maximum of unique output lines is, (a)Decoder (b)Encoder (c)Full-adder (d)Full-su...Jan 06 2018
Tell whether each of the following relationships reflects a positive or a negative correlation:a. the amount of stress in people's lives and the number of colds they ...May 13 2020
Fair work act 2009 as volte-face of economic liberal philosophy and policies >May 28 2020
What is the present value of $ 5000 paid at the end of each of the next 94 years if the interest rate is 12 % per year? The present value is $ ____ Round to nearest cent.Thanks!Aug 28 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.