Consider a toy making firm’s long run production choices. The following table shows the marginal products of capital (K) and labour (L) for various methods of producing 10,000 toys per day.
Production
Method MPK MPL
A 100 4
B 90 18
C 80 30
D 70 40
E 60 48
F 50 55
G 40 60
Capital costs $5.25 per unit and labour costs $3.00 per unit.
a) Suppose the firm is currently producing 10,000 toys per day by using production method E. To
minimize the cost of production, should the firm adjust its employment of capital and/or labour? If so,
why should it hire more or less capital and/or labour?
b) Calculate, if possible, which method minimize costs.
Effect of risk on the financial performance of East Africa companies. Provide examples to strengthen your report
Required
What are these budgetary implications for the financial prospects of the real estate sector in Kenya? Quantitative analysis and examples from the budget required as part of your answer
discuss whether planned economy or mixed economy could produce better quality education