Determine the following whether the firm is operating, Ask an Expert

Economics

A firm uses two variable inputs, labor (L) and raw materials (M), in producing its output. At its current level of output:

Cl= $10/unit MP= 25
Cm= $2/unit MP= 4

Determine the following:

a.whether the firm is operating efficiently, its objective to minimize the cost of producing the given level of output.

b. what changes (if any) in the relative proportions of labor and raw materials need to be made to operate efficiently.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M970710

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