Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $52,000 to $64,000. If he adds one more tractor, monthly revenue will increase from $52,000 to $60,000. Additional workers each cost $4,000 per month, while an additional tractor would also cost $4,000 per month.

a. What is the marginal revenue product of labor? The marginal revenue product of capital?

b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL / PL )? What is the ratio of the marginal revenue product of capital to the price of capital (MRPK / PK )?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M950596
  • Price:- $20

Guranteed 24 Hours Delivery, In Price:- $20

Have any Question?


Related Questions in Microeconomics

Question maybe people have too many choices according to

Question: Maybe people have too many choices. According to one political science professor, "choices proliferate beyond our pleasure in choosing and our capacity to handle the choices." 75 One West Los Angeles supermarke ...

Question suppose that the government cuts taxes in response

Question: Suppose that the government cuts taxes in response to a recessionary gap, but because of legislative delays the tax cut is not put in place for 18 months. Assuming that the government's objective is to stabiliz ...

Question below you find several incidents that are the

Question: Below you find several incidents that are the consequence of shifts in either Money Supply or Money Demand. First, tell me whether the instance is due to a Supply or Demand shift. Second, state which specific s ...

Question in the land of purity there is only one form of

Question: In the Land of Purity, there is only one form of pollution, called "gunk." Table 12.14 shows possible combinations of economic output and reduction of gunk, depending on what kinds of environmental regulations ...

Question 1 can it ever be the case that third degree price

Question: (1) Can it ever be the case that third degree price discrimination increases social welfare? If so, present an example to illustrate. If not, explain why. (2) Use the context of the durable goods monopoly probl ...

Question you are making 1000 monthly deposits into a fund

Question: You are making $1000 monthly deposits into a fund that pays interest at a rate of 6% compounded monthly. What would be the balance at the end of 10 years? The response must be typed, single spaced, must be in t ...

Question - liquidity premium hypothesis based on economists

Question - Liquidity Premium Hypothesis Based on economists' forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: R1 = 6.70% E(r2) = 7.80% L2 ...

Question 1 what is the difference between the concepts of

Question: 1. What is the difference between the concepts of correlation and of causation? 2. What is the difference between a theory and a hypothesis? 3. What is a variable? 4. Explain the omitted variable problem, using ...

Question the european union is home to more than 500

Question: The European Union is home to more than 500 million (mostly well-heeled) consumers, making it one of the largest and most attractive markets worldwide. As firms contemplate selling goods in the EU, they conduct ...

Question larry is investing in the martian stock market of

Question: Larry is investing in the Martian stock market of the future. Suppose Larry has the Utility function U(R, s)=R-0.3s^2. In this case R is "return", and s is "risk". Find the marginal rate of substitution of s fo ...

  • 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

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved