Section ii a firm uses steel and aluminum to produce auto, Ask an Expert

Economics

Section II A firm uses steel and aluminum to produce auto parts. The current input mix used by the firm is such that the marginal product of aluminum is equal to 800 units, while the marginal product of steel is equal to 500 units. The price of aluminum is $160 per unit and the price of steel is $125 per unit. Using only the definition provided in response to question 4 above, please show:

(a) how this firm could reduce its cost of producing the current level of output, and

(b) by how much this firm could reduce its cost of producing the current level of output.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92000325

Have any Question?Write your Review or question?

Related Questions in Business Economics

Cnsider taking a random sample from a nmicrosigma 2

Consider taking a random sample from a N(µ,σ 2 ) distribution. Consider testing the hypothesis H0 : µ = 63 versus the alternative HA : µ 6= 63. Suppose that a random sample of size 16 is taken, σ is known to be 8, and th ...

What is the theory of consumer choice and how it consumers

What is the theory of consumer choice and how it consumers facing trade-offs make decisions and how they respond to changes in their environment?

You have to negotiate a contract with a businessperson from

You have to negotiate a contract with a businessperson from France. How will you approach them? How does the French communication pattern and listening habit differ from your own culture?

A confidence interval estimate is desired for the gain in a

A confidence interval estimate is desired for the gain in a circuit on a semiconductor device. Assume that gain is normally distributed with standard deviation σ = 30. (a) How large must n be if the length of the 95% CI ...

A suppose that for a given year national saving in a

a. Suppose that, for a given year, national saving in a country (an open economy) equals 100, private consumption equals 50, and government consumption equals 20. What is the level of output in this country in this year? ...

In a sample of 200 college students 87 come from out of

In a sample of 200 college students, 87 come from out of state, 100 live on campus, and 63 come from out of state and live on campus : Draw a Venn diagram for this data Find P(I pick a student who come from out of state ...

Players of a lottery pay 1 for a ticket that lets them

Players of a lottery pay $1 for a ticket that lets them select 6 non-repeating numbers from 1 to 49. What is the probability of correctly guessing all 6 values with just one ticket?

What do you recommend that a company do to prevent andor

What do you recommend that a company do to prevent and/or solve subscriber uncollectable issues?

In this question are you just using the empirical ruleyou

In this question are you just using the empirical rule? You know that your population is normally distributed with a mean of 100 and a standard deviation of 15. Using the empirical rule as a rough approximation, what is ...

Determine the sample size n needed to construct a 99

Determine the sample size n needed to construct a 99?% confidence interval to estimate the population mean when σ=24 and the margin of error equals 9.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert