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N M I M S DEEMED UNIVERSITY

Mumbai, Maharashtra
Faculty : 9
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ssacchu's Profile
Q. 1. The marginal product of labour in a production process is statistically estimated as MPL = {0(K/L)}^0.5 Currently the process is using 100 units of K and 121 units of L. Given the veryspecialised nature of capital equipment K, it takes about a year to increase K; but the rate of labour input, L, can be varied daily. If the wage rate is $ 10 per unit and the price of output is $2 per unit, is the firm operating efficiently in the short run? If not, explain why. Also determine the optimal rate of labour input. On what factors does the labourefficiency depend? 2. Explain how equilibrium of the firm is achieved. Also, explain (along with examples) how profit maximizing output is determined in short run and long run for: a. Perfect Competitive market b. Monopoly market c. Monopolistic market d. Oligopoly market
  Sachin Tamrakar | Apr 29th, 2011 2:19 pm
ssacchu's Profile
Q. Kindly solve this two question as soon as possible to submit assignment. 1. The marginal product of labour in a production process is statistically estimated as MPL = {0(K/L)}^0.5 Currently the process is using 100 units of K and 121 units of L. Given the veryspecialised nature of capital equipment K, it takes about a year to increase K; but the rate of labour input, L, can be varied daily. If the wage rate is $ 10 per unit and the price of output is $2 per unit, is the firm operating efficiently in the short run? If not, explain why. Also determine the optimal rate of labour input. On what factors does the labourefficiency depend? 2. Explain how equilibrium of the firm is achieved. Also, explain (along with examples) how profit maximizing output is determined in short run and long run for: a. Perfect Competitive market b. Monopoly market c. Monopolistic market d. Oligopoly market Thanks sachin 9303142881
  Sachin Tamrakar | Apr 29th, 2011 2:18 pm
 
 
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