When costs are at a minimum, a) the ratio of the MPL/MPK < PL/PK. b) MPL = MPK. c) the extra output we get from the last dollar spent on an input must be the same for all inputs. d) Price L = Price K.
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When costs are at a minimum,
a) the ratio of the MPL/MPK < PL/PK.
b) MPL = MPK.
c) the extra output we get from the last dollar spent on an input must be the same for all inputs.
d)
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- True or False: ( ) When TPL increasing MPL decreases and negative ( ) If indifference curve is a straight line, there is perfect substitution between good x, y and MRS = -1 ( ) AFC curve will never touch the ATC in the short-run because AVC will never = zero.Why is cost-minimization analysis most likely to be useful for managers?Your software company recently instituted a highly regarded training program for newly hired software developers. The benefits of this program include not only the benefits to employees but also the goodwill generated by an increase in your reputation among customers and professional groups. The costs of this training program include all of the labor, space, and consultants necessary. Suppose these benefits and costs are given by B(Q) = 100Q - 2Q2 and C(Q) = 10Q, where Q represents the amount of hours each software developer should spend in training. (Note that MB = 100 - 4Q, MC = 10, and that time can be measured in fractions of one hour.) What level of Q maximizes the total benefits of your newly introduced training program? What level of Q minimizes the total costs of the program? What level of Q maximizes the net benefits? What level of training is optimal? Why?
- Your software company recently instituted a highly regarded training program for newly hired software developers. The benefits of this program include not only the benefits to employees but also the goodwill generated by an increase in your reputation among customers and professional groups. The costs of this training program include all of the labor, space, and consultants necessary. Suppose these benefits and costs are given by B(Q) = 100Q - 2Q2 and C(Q) = 10Q, where Q represents the amount of hours each software developer should spend in training. (Note that MB = 100 - 4Q, MC = 10, and that time can be measured in fractions of one hour.) What level of Q maximizes the net benefits? What level of training is optimal? Why?A convenience store manager earns a base salary plus a small bonus of $60 for each of ten different possible monthly milestones he meets. If the manager meets a milestone, the full bonus is paid. However, if the manager falls even one penny short, none of that bonus is paid. Suppose each of the ten milestones requires 40 hours of effort to meet, and that the manager has 160 hours of effort to allocate to work each month. In order to maximize the total monthly bonus, the manager should allocate hours toward meeting each of milestones and hours toward meeting each of the remaining sales milestones.Implicit costs are defined by economists as nonmonetary opportunity costs. Why is it important for a firm to take these costs into consideration when evaluating a potential activity, when they don’t involve any monetary expense?
- Your software company recently instituted a highly regarded training program for newly hired software developers. The benefits of this program include not only the benefits to employees, but also the goodwill generated by an increase in your reputation among customers and professional groups. The costs of this training program include all of the labor, space, and consultants necessary. Suppose these benefits and costs are given by B(Q) = 100Q − 2Q2 and C(Q) = 10Q, where Q represents the amount of hours each software developer should spend in training. (Note that MB = 100 − 4Q, MC = 10, and also that time can be measured in fractions of one hour.) a. What level of Q maximizes the total benefits of your newly introduced training program?b. What level of Q minimizes the total costs of the program?c. What level of Q maximizes the net benefits?d. What level of training is optimal? Why?Q64 With regard to economic decision making for firms, the short run is... a. A definite number of months. b. Less than one year. c. A period over which the quantities of all factors of production and technology are variable. d. A period over which the quantities of all factors of production are variable but technology is fixed. e. A period over which the quantity of at least one significant factor of production is fixed. Clear my choiceAldrin is a call center agent and has a daily wage of ₱ 2500. Aldrin takes an antihistamine drug once a day for his allergic rhinitis. He regularly visits his physician once a year to get a new prescription so that he could purchase another 1 year supply of his antihistamine drug. This visit takes place in the morning and he does not miss any work. Because his regular visit to his physician, it gained him 6 more productive workdays per year than if he had not received regular treatment for allergic rhinitis. Compute for the benefit-cost ratio of the antihistamine drug therapy given the following information. Please attach here your solution. Round-off your final answer to 2 decimal places and box your final answer.
- Focusing only on transportation costs, if a firm pays both the costs of transporting inputs to its plant and the finished product to its customers, the profit maximizing plant location A. minimizes the sum of the two transportation costs. B. can be anywhere between the location of the inputs and of the customers because the firm pays both sets of transportation costs. C. must always be closer to the location of the inputs because transporting inputs is always more expensive than transporting finished products. D. None of the above answers are correct.A decision maker wishes to minimize the cost of producing a given level of total benefit B = 288. The cost function is C = 6x + 3y. And the total benefit function is B = xy. Set up the Lagrangian and then determine levels of x and y at the minimum level of cost. What is the minimum value of cost?When marginal cost is greater than marginal benefit at the current activity level, the decision maker can increase net benefit by decreasing the activity because total cost will fall by more than total benefit will fall. net benefit is upward sloping at this point. marginal cost is rising faster than marginal benefit is falling. total benefit will rise by more than total cost will rise.