Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

The wall street journal reported that Japan’s No 4 automaker-Mitsubishi Motors- announced a major restructuring plan in an attempt to reverse its 6 percent declining global sales,. The company's sales were particularly hard hit in North America, where its sales fell 29% due to combination of an unusually large number of bad loans and reduced demand resulting from tightening of its lax credit criteria. in Japan , sales have slipped 56% (excluding minivans) due, in large part, to automobile recalls and attempt to cover up faulty products. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and capital are used in its production process. prior to restructuring Mitsubishi's marginal rate of technical substitution is 0.15(in absolute value). to hire workers, suppose that Mitsubishi must pay the competitive hourly wage 1.330 yen. in the study of its production process and markets where capital is procured, suppose that Mitsubishi determines that its marginal productivity of capital is 0.5 small cars per hour at its new targeted level output and that capital is procured in a higly competitive market. The same study indicates that the average selling price of Mitsubishi’s smallest car is 950,000 yen. Determine the rate at which Mitsubishi can rent capital and the marginal productivity of labor at its new targeted level of output. to minimize costs Mitsubishi should hire capital and labor until the marginal rate of technical substitution reaches what proportion?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91704942

Have any Question?


Related Questions in Business Economics

A what is gdp deflator and how is it calculatedb if gdp

(a) What is GDP deflator and how is it calculated? (b) If GDP deflator for the year 2014 and 2015 are 105 and 108 respectively, then calculate the increase in price level between 2014 and 2015.

Advertisements suggest that a new window design can save

Advertisements suggest that a new window design can save $400 per year in energy cost over its 30-year life. At an initial cost of $8,000 and zero salvage value, using IRR, is this window a good investment? MARR is 8%.

The following is a set of data from a sample of n55 9 3 2

The following is a set of data from a sample of n=5 5 9 3 2 6 The mean is 5 The median is 5 There is no solution for mode. What and how do I find the variance?

Use the following table to find thenbspsteady-state values

Use the following table to find the? steady-state values of the? capital-labor ratio and output if the? per-worker production function is y t  = 2k t 0.3 . Saving rate (s) = 0.37 Depreciation rate = 0.04 population growt ...

What is the average depth of the human vaginal

What is the average depth of the human vaginal cavity?

What does the term factors of production and the three most

What does the term, factors of production and the three most important factors of production?

If the market for a good is operating in the inelastic

If the market for a good is operating in the inelastic range of market demand. Which of the two policy that follow is more effective when handling (technical) externalities: Cap-and-trade or emissions fee?

A magazine provided results from a poll A magazine provided results from a poll

A magazine provided results from a poll of 1500 adults who were asked to identify their favorite pie. Among the 1500 ?respondents, 14?% chose chocolate? pie, and the margin of error was given as plus or minus ±3 percenta ...

A survey of publishing jobs indicates that 92 percent are

A survey of publishing jobs indicates that 92 percent are completed on time. Two publishing jobs are to be completed this week. (Assume the likelihood the second is completed on time does not depend on whether the first ...

A production system has two spares of a critical component

A production system has two spares of a critical component that have average uptime 1/lamba = 1 month. Find the probability that the 3 components (the operating one and the two spares) will last more than 6 months. Assum ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As