Suppose you manage a firm with two production plants. The marginal product of labor at plant 1 is MP1 = 1400 - L1 where L1 is the number of workers employed in plant 1. The marginal product of labor at plant 2 is MP2 = 2000 - L2 where L2 is the number of workers employed in plant 2. Given that you have 1,000 workers, what is the best allocation of workers between the two plants?
Answer to relevant QuestionsSuppose a competitive firm produces spaghetti dinners. The market price of a spaghetti dinner is $20. The cost of making the dinners is given by C(Q) = 10Q + (Q2/160). The marginal cost is given by MC = 10 + (Q/80).a. How ...Identify a real-life outsourcing decision that has been made. Identify the specific reasons for the outsourcing. If information is available, discuss the results of the outsourcing decision (jobs lost, cost savings, etc.).The Rutter Nursery Company packages their pine bark mulch in 50-pound bags. From a long history, the production department reports that the distribution of the bag weights follows the normal distribution and the standard ...How can Macy’s corporation apply cultural change to the organization to improve overall growth of the company as a whole?Under its original business model, what advantage did Dell gain from its tight control system? What disadvantages is the company now experiencing? Can you pinpoint two or three areas in which Dell’s approach to strategic ...
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