According to The Wall Street Journal, Mitsubishi Motors
recently announced a major restructuring plan in an attempt to
reverse declining global sales. 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 0.13 (in
absolute value). To hire workers, suppose that Mitsubishi must pay
the competitive hourly wage of ¥1,700. In the study of its
production process and markets where capital is procured, suppose
that Mitsubishi determines that its marginal productivity of
capital is 0.85 small cars per hour at its new targeted level of
output and that capital is procured in a highly competitive market.
The same study indicates that the average selling price of
Mitsubishi’s smallest car is ¥900,000. Determine the rate at which
Mitsubishi can rent capital and the marginal productivity of labor
at its new targeted level of output.
Instruction: Enter your response for marginal
productivity of labor rounded to four decimal places.
Rental rate of capital: ¥
Marginal productivity of labor:
To minimize costs Mitsubishi should hire capital and labor until
the marginal rate of technical substitution reaches what
proportion?
Instruction: Enter your response rounded to four decimal places.
According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an...
According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. 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 0.16 (in absolute value). To hire workers, suppose that Mitsubishi must pay the competitive hourly wage of ¥1,620. In the study of its production process...
According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. 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 0.16 (in absolute value). To hire workers, suppose that Mitsubishi must pay the competitive hourly wage of ¥1,620. In the study of its production process...
Problem 05-20 (algo) According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. 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 of ¥1,670. In the study of...
Che Problem 05-20 (algo) According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. 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 0.16 (in absolute value). To hire workers, suppose that Mitsubishi must pay the competitive hourly wage of X1,500. In the study...
According to The Wall Street Journal, Mitsublshi Motors recently announced a major restructuring plan In an attempt to reverse declining global sales. Suppose that as part of the restructuring plan MItsublshi conducts an analysis of how labor and capltal are used In Its production process. Prior to restructuring Mitsublshi's marginal rate of technical substitutlon Is 0.14 (In absolute value). To hire workers, suppose that MItsubishi must pay the competitive hourly wage of 1,580. In the study of Its productlon process...
12.22 points eBook References According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. 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 0.13 (in absolute value). To hire workers, suppose that Mitsubishi must pay the competitive hourly wage of ¥1,700. In the study...
Really need help figuring out this problem please solve! According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. 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 0.11 (in absolute value). To hire workers, suppose that Mitsubishi must pay the competitive hourly wage...
A firm can manufacture a product according to the production function: Q = F(K, L) = K3/4L1/4. Instruction: Enter your responses rounded to three decimal places. a. Calculate the average product of labor, APL, when the level of capital is fixed at 81 units and the firm uses 16 units of labor. ____ What is the average product of labor when the firm uses 256 units of labor? ____ Instruction: The second response is the exponent on L in the...
Problem 05-01 A firm can manufacture a product according to the production function: Q=F(K.L) = 3/4 1/4 a. Calculate the average product of labor, AP, when the level of capital is fixed at 81 units and the firm uses 16 units of labor. Instruction: Round your responses to 3 decimal places. What is the average product of labor when the firm uses 256 units of labor? b. Find an expression for the marginal product of labor, MP4, when the amount...
Question 2: Production Function and Profit Maxi- mization Consider a production function of Cobb-Douglas form: for some α, β E (0, 1) (a) Plot the isoquant of F (b) Derive that technical rate of substitution of F. Does F exhibit diminishing technical rate of substitution? (c) Does F exhibit diminishing marginal productivity of labor? What about marginal (d) Find out the conditions for α and β such that F is increasing return to scale, (e) Suppose that F does not...