Question

“A firm will never find it optimal to employ so much of an input that its...

“A firm will never find it optimal to employ so much of an input that its marginal product is negative.” Is this statement true or false? Explain your answer.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If a firm is using an optimal amount of a given input, which of the following...
If a firm is using an optimal amount of a given input, which of the following is true? a. The marginal cost of the resource cost is equal to the incremental revenue brought in by its use. b. The marginal revenue product is maximized. c. The marginal resource cost is equal to zero. d. The difference between the marginal cost of the resource and the incremental revenue generated by its use is maximized.
A firm should never raise or lower the price of its product before considering the price...
A firm should never raise or lower the price of its product before considering the price elasticity of demand for that product." Argue for or against the above statement.
A firm currently buys an important input at a cost of $38 per input unit. Each...
A firm currently buys an important input at a cost of $38 per input unit. Each finished good unit requires 1 input unit. Alternatively, the firm could use 1,500 square feet of factory space to make the input (those 1,500 square feet of factory space are currently leased to another firm for $56,656 per period). To make the input, the firm would need to acquire equipment at a cost of $68,900 per period and labor at a cost of $87,616...
Is the following statement TRUE, FALSE or UNCERTAIN: Once a firm has built its plant and...
Is the following statement TRUE, FALSE or UNCERTAIN: Once a firm has built its plant and purchased its machines (capital), the firm should always operate (produce output)? EXPLAIN your answer.
A firm’s production function is ? = ?Lα ?β where A, α, and β are positive...
A firm’s production function is ? = ?Lα ?β where A, α, and β are positive constants. The firm currently uses 500 units of labor and 40 units of capital. If the firm adds 1 more unit of labor, what happens to productivity of capital? Explain. b. Given a production function Q = f(L, K), if marginal product of labor and marginal product of capital are both positive, then this function displays diminishing MRTS. Explain if this statement is true...
If labor is the only variable input of a firm and the marginal product of labor...
If labor is the only variable input of a firm and the marginal product of labor is falling, the firm will always product A. more than the profit-maximizing level of output B. less than the profit-maximizing level of output C. at a level of output where average total cost is at a minimum D. at a level of output where marginal costs are rising E. at a level of output where average variable costs are falling I know the right...
True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and...
True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and briefly explain your answer. If your answer depends on any assumptions, state them clearly. Use graphs or equations to illustrate your answer whenever it is helpful. 1. A worker should never trust an implicit contract with an employer that pays them less than their marginal product when they first join the firm, but more than their marginal product after many years with the firm,...
True or false? A competitive firm has a continuous marginal cost curve. It finds that as...
True or false? A competitive firm has a continuous marginal cost curve. It finds that as output increases, its marginal cost curve first rises, then falls, then rises again. If it wants to maximize profits, the firm should never produce at a level of output where the price equals marginal cost, and the latter decreases as output increases. Explain, please!
Suppose a firm purchases capital and labor in competitive markets at prices of r=6 and w=8,...
Suppose a firm purchases capital and labor in competitive markets at prices of r=6 and w=8, respectively. With the firm's current input mix, the marginal product of capital is 7 and the marginal product of labor is 10. Is this firm minimizing its costs? If so, explain how you know. If not, explain what the firm ought to do. please write legibly and go step by step please and thank you
Why would a monopoly firm never produce in the inelastic portion of its demand curve? Explain....
Why would a monopoly firm never produce in the inelastic portion of its demand curve? Explain. Use an example to illustrate your explanation.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT