The optimal amount of capital and labor used by a firm in, Ask an Expert

Economics

The optimal amount of capital and labor used by a firm in the production process is usually obtained by the technique of cost minimization, rather than amximizing the level of output produced.

a) Explain why this is usually true using isoquants and an isocost curve.

b) Explain and show graphically why this many not be true for a perfectly competitive firm.

c) Under what conditions will cost minimization and maximizing the level of output produced, yield the same amount of output? Explain and show graphically.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92199014

Have any Question?Write your Review or question?

Related Questions in Business Economics

State the total degrees of freedom for the

State the total degrees of freedom for the following t -tests. (If you need to use ∞, enter INFINITY.) (a) n = 17 for a one-independent sample t -test (b) df 1 = 12, n 2 = 18 for a two-independent sample t -test ...

A binomial process has 892 trails and a probability of

A binomial process has 892 trails and a probability of success of 0.78. What is the standard deviation of this process distribution?

If a patient who was injured and is thinking about whether

If a patient who was injured and is thinking about whether or not to file a medical malpractice claim against his doctor. He is considered a "rational" decision maker in the sense that he decides whether or not to file a ...

Each of 30 teams in a league has a demand for generic

Each of 30 teams in a league has a demand for generic advertising of Q = 260 - 4P. Price is measured in thousands of dollars. Ads cost $510,000 each. How many ads will the teams want to purchase as a group?

How can local the local government help prepare employees

How can local the local government help prepare employees for higher level positions in the organization.

You want to be a millionaire when you retire in 35 yearsa

You want to be a millionaire when you retire in 35 years. a. How much do you have to save each month if you can earn an annual return of 10.7 percent? (Do not round intermediate calculations and round your answer to 2 d ...

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?

What are the main things to remember about elasticity

What are the main things to remember about elasticity, supply and demand, tax incidence, government controls on the market, and economic theories?

Discuss and provide application of concepts of supply and

Discuss and provide application of concepts of supply and demand by identifying two goods and two services you consume at the household or professional level. For each example, you will identify a demand-shifting factor ...

The local grocery store sells potatoes in 5-pound bags

The local grocery store sells potatoes in 5-pound bags. Because potatoes come in unpredictable sizes, it is almost impossible to get a bag that weighs exactly 5 lbs. Therefore, the store advertises that the bags average ...

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