Questions LLC
Login
or
Sign Up
Ask a New Question
Economics
Production and Cost Analysis
Cost reduction strategies
If a firm is producing where MP1/w1 > MP2/w2, what can it do to reduce costs but maintain the same output?
1 answer
The firm can reduce costs by substituting the input with the lower marginal product for the input with the higher marginal product. This will allow the firm to maintain the same output while reducing costs.
You can
ask a new question
or
answer this question
.
Related Questions
you are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its
The cost accountant of a firm producing colour television has worked out the total cost function for the firm as
Consider a simple economy consisting of only four firms. Firm A, a mining enterprise, extracts iron ore. Firm B, a Steelmaker,
In general, the larger the portion of a firm's sales that are on credit, the:
A. lower will be the firm's need to borrow B.
If a firm is producing where MPlIw1 > MPz/wz, what can it do to
reduce costs but maintain the same output?
Suppose there are 1000 identical firms producing diamonds. Diamond miners receive the wage rate w. Assume that the short-run
Suppose there are 1000 identical firms producing diamonds. Diamond miners receive the wage rate w. Assume that the short-run
.1 Given the cost function of a firm as: C = 128 – 6Q + 2Q3 + 3Q2, Compute the following
A. TFC B. TVC of producing 4 units C.
A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming
Suppose that a firm in a perfectly competitive industry finds that at its current output rate, marginal revenue exceeds the