E Marginal Product And Marginal Revenue Product Information For Labor And Capital Assume The Other Quantities Used By T 1 (95.72 KiB) Viewed 34 times
E Marginal Product And Marginal Revenue Product Information For Labor And Capital Assume The Other Quantities Used By T 2 (24.97 KiB) Viewed 34 times
e marginal product and marginal revenue product information for labor and capital. Assume the other quantities used by the firm remain consfanf. The price for labor is RM6 and the price for capital is RM4. Lise the table to answer the following questions. MPL MRPL 2 3 6 (0) (1) 50 45 30 20 10 5 0 836 30 24 18 12 6 0 QK 1 2 3 A 5 6 MPK 40 38 32 30 20 15 10 MRPX What is the profit-maximizing combination of labor and capital? $30 29 25 20 18 15 10 What would be the least-cost combination of labor and capital that would enablethe firm to produce 285 units? (3 markah/marks) (3 markah/mar/rs) Suppose the price of capital decreases to RM3. Now, what is the least-cost combination of labor and capital? How many units of output would it allow the firm to produce? (3 markah/mats) (iv) Given the price change, what is the profit-maximizing combination of labor and capital? How has output changed? (3 markah/marks) 7/8
(c) How do the factors determining resource demand differ from those in the product market? (3 markah/marks) (d) What are The two key factors that determine the strength of demand? How do they determine whether a pood is in high demand or low demand? (4 markah/marks) [Jumlah markah/7ofa/ marks: 25 markah/marks]
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