Suppose a firm is employing labour (L) and capital (K) such that MPK/MPL = PK/PL. If the price of labour rises, the cost-minimising firm should then... a. Employ more labour and less capital because MPK/MPL > PK/PL. b. Employ more capital and less labour because MPK/MPL > PK/PL. c. Employ more capital and less labour because MPK/MPL < PK/PL. d. Do nothing. e. Employ more labour and less capital because MPK/MPL < PK/PL.

Q: In short-run production with two inputs where land is a fixed input labor is a variable input, once…

A: Marginal product of labor (MPL) is defined as the change in the product of labors by employing one…

Q: Question 11 3 pt Assume that a firm spends $100 on two inputs, labor (graphed on the horizontal…

A: Given  The firm spends $100 on the two inputs, labor and capital.  Wage = 20  Rental cost of capital…

Q: Explain the profit-maximization rule for employing factors of production. Explain in terms of our…

A: Production means the goods and services that are produced by converting raw materials into finished…

Q: Consider a firm in a perfectly competitive product market selling each unit of its product for $9.…

A: Introduction We have given a production of a competitive firm.  A)i) Production function Q = 10 K1/4…

Q: A firm's production function is: q = 16L1/2K1/3 where q is the firm's hourly total product, L is the…

A: Marginal product of labor (MP) can be calculated as follows.

Q: Suppose a beverage company is profit-maximising. It has one factor of production, which is the…

A: Part: A → The firm will hire laborers until the value of the marginal product (VMPL) is not equal to…

Q: A firm produces its product using only labor Its production function is Q= 20L -², where Q is the…

A: The production function is given as Q = 20L - L2 Wage rate = $13 /hour Market Price = $5/hour

Q: Answer the question on the basis of the following output data for a firm. Assume that the amounts of…

A: Average product is the average result (or items) delivered by each info (regularly, number of…

Q: Answer the question on the basis of the following output data for a firm. Assume that the amounts of…

A: Answer to the question is as follows:

Q: A firm uses labor (L) and capital (K) to produce output (q) according to the function: q=1/2 ⋅ L1/2…

A: It is given that the firm is in short run so Capital will remain fixed. The firm will tend to…

Q: Question 1 Suppose that a firm produces output with capital and labor. Suppose that the production…

A: Given information Production function Q=K^1/4*L^1/4 W=1 r=1

Q: Consider the production function: Y = K²/3L2/3 Suppose the supply of capital is 8 and the supply of…

A: Given: Production function: Y=K1/3L2/3 Supply of capital=8 Supply of labor=27 Note: Due to multiple…

Q: Answer the attached question

A: Production function shows a technical relationship between the numbers of inputs used to produce…

Q: at p=10 and has a short run production function Q(L)=20L-L2. Its wage rate function is w=40+2.5L.…

A: *Answer:

Q: In the long run, a profit-maximizing firm will adjust its employment of capital and labor so that…

A: All of these answers are correct

Q: Labor Demand and Supply - End of Chapter Problem Consider each given scenario and the effect it will…

A: Part a ) New advances in technology reduce the cost of GM machinery. Assume that the substitution…

Q: A competitive, profit-maximizing firm uses two inputs labor (2) and capital (K). Its production…

A:

Q: 4. For the production function Q = F(L) = 4\L, calculate the labor demand function, and the output…

A: Firm will maximise profit at a long where wage is equal to values of marginal product of labor.

Q: Consider the case of a firm which produces q units of a single output using two inputs, labour (L)…

A: An isoquant refers to that combinations of inputs which provide same level of output . Slope of an…

Q: . The hiring of labour with fixed factor of production under short run after sometimes leads to…

A: Answer to the question is as follows :

Q: The robot bar below leads to:     A. Increases in total output, but with temporary job losses for…

A: The quantity of output produced by a firm depends on the factors of production used, availability of…

Q: Suppose the firm's production function is Q = K¹/3L2/3, where the MPK = [2/3 and MPL 3K-2/3 13…

A: The Firm's Production function  Q=K1/3L2/3  where MPk=L2/33K2/3 and MPL=2K1/33L1/3 This Production…

Q: Consider the following set of data that looks at how output changes following changes in inputs.…

A: We can illustrate the definitions of Marginal Product of Labor to answer this question.

Q: Which of the following is incorrect? As we take the partial derivative of the long-run cots function…

A: Long Run Cost is the total expenditure incurred in the production process for the production of…

Q: Widget Factory INC. in Wisconsin has the follwing production function…

A:

Q: A firm uses labor (L) and capital (K) to produce output (q) according to the function: q = } Li . K…

A: In the short run, capital will remain fixed. The firm will maximize profit at a point where wage is…

Q: A firm's production function is: q= 10L1/2K1/4  where q is the firm's daily total product, L is the…

A:

Q: Suppose that we are in there long-run and a firm is choosing K and L to cost minimize. Suppose that…

A: Marginal rate of technical substitution shows the ratio of marginal product of labor to marginal…

Q: Suppose that the production of a certain product only requires one input, labor, and that the…

A: Marginal Revenue Product is the additional revenue generated by employing one more input factor .…

Q: True or False, and explain why. 1. The substitution effect is larger when labor and capital are…

A: In labor economics, markets behaves different on different situations. Workers make trade-off…

Q: Consider a firm that uses only labour and capital as inputs. At the present use of labour and…

A: When a firm that uses only labour and capital as inputs. At the present use of labour and capital,…

Q: suppose that we are in there long-run and a firm is choosing K and L to cost minimize. Suppose that…

A: A firm minimizes cost of production by hiring a combination of inputs where marginal rate of…

Q: Consider the following production function: q = 32LK + 10L2 - Assume capital is fixed at K= 25. At…

A: Marginal Product of Labor=dqdLPutting K=25 in q, we getq=32(25)L+10L2-13L3q=800L+10L2-13L3

Q: q(L, K) = L²/2 . K²/2 dditionally, assume that, in the short-run, the firm has already invested in 1…

A: An administrator amplifies benefit when the worth of the last unit of item (marginal income)…

Q: A perfectly competitive firm's production function is Q=8LK where Q is the amount produced, L is the…

A: Marginal revenue product of labor measures the change in total revenue due to a change in labor by a…

Q: A firm is currently producing 500 units of output daily by employing 60 units of labor daily at a…

A: marginal rate of technical substitution is the rate at which one factor of production can be…

Q: 04. Suppose the firm is hiring labor and capital and that the ratio of marginal products of the two…

A: In a market, when a firm tries to minimize cost, it indirectly implies that the profit will be…

Q: Suppose you are considering hiring another worker. Also assume that you are at a firm that is…

A: We know that at the optimum: MRTS = MPL/MPK = w/r So here we have MPL = 5, MPK = 20 and w=2 and r=…

Q: Suppose there is a firm who hires workers as part of their production. The firm makes use of two…

A:

Q: 1: The short-run demand curve slopes downward because:   A: The labour supply curve slopes upward…

A: Since you have posted multiple questions, we will solve the first one for you. If you want any…

Q: Now suppose that the firm is able to increase its units of capital from 5 units to 7 units of…

A: Given, MPL = (100 - 10L + KL)

Q: Question 2. 1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L/2…

A: Given production function :- F(L, K) = 2L1/2 K1/2 w = $30 r = $25 P = $50 K0 = 900 (fixed)   So the…

Q: Consider a competitive, price-taking firm that employs only one variable input, labor, to produce a…

A: a) Given the table, the maximum profit is when 8 units of labor are hired and 63 units of output are…

Q: Consider the following shortrun production function: Q =100L - L2 where Q is the output level and L…

A: Q =100L - L2   P=50 price of output in the market = K.sh 50 COst (TC) = 1200/hour labour costs =…

Q: Which of the following is required for all workers to earn identical wages in the long run? Check…

A: Long-run equilibrium refers to the time period where all factors of production are variable.

Q: 29. Consider a firm minimising the cost of production, given factor prices. For this firm, the…

A: The factors of production are the inputs or resources used in production process. The production…