A farm in the developing country of Dessica produces 10000 bushels of millet per year, using 20 units of capital and 40 local workers. The price of…

A farm in the developing country of Dessica produces 10000 bushels of millet per year, using 20 units of capital and 40 local workers. The price of millet is .32. The wage is $250 per worker; the cost of capital is $1000 per unit. At current levels of capital and employment, the marginal product of capital is 40 and the marginal product of employment is 10.

a) Is this firm employing K and E at levels that minimizing its costs in the long run? Is it maximizing its profits in the long run?

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
A farm in the developing country of Dessica produces 10000 bushels of millet per year, using 20 units of capital and 40 local workers. The price of…
Post Your Own Question And Get A Custom Answer
Hire Writer

b) The worker in Dessica have been very sickly due to disease and malnourishment. Recently, improvements in sanitation and food distribution have improved the health and productivity of local workers, increasing the marginal product of employment to 44. What will be the substitution effects of this change in labor productivity, on employment and capital? Explain using the conditions for cost minimization, assuming the wage does not change because of the productivity improvement.

c)What will be the scale effects of the increasing in labor productivity, on each factor?

d) Can you predict the direction of the total effect on E,K?

Running Head: LABOR AND CAPITAL SUBSTITUTION Labor and Capital SubstitutionStudent’s NameUniversity of Affiliation 1 LABOR AND CAPITAL SUBSTITUTIONQUESTIONa) Firm Employment on Capital and…

Why Hire a Professional Essay Writer from MyHomeworkGeeks

Quality Urgent Essays

Domyhomeworkk online platform provides the best essay writing service ever received elsewhere, thanks to our professional essay writers. Experience gained in the 10+ years of being in the assignment writing industry is also an added advantage.

Professional and Experienced Academic Writers

A lot is done to maintain us as the best essay writing service provider. Besides owning a degree from a recognized university, a writer must pass the rigorous tests we take them through before they are considered eligible to offer urgent essay help on our website.

Affordable Urgent Assignment Help

Who said a reliable website should not be cheap also? While it is human nature to associate prices with quality, that does not always work. At domyhomeworkk.com, we guarantee you cheap and urgent essay help without compromising the quality.

24/7 Available Urgent Essay Writing Service

Whether it is a ‘write my essay for me cheap’ or ‘edit my essay’ order you want to request, always feel free to reach us at any time of the day. Our experts work in shifts to ensure that you access urgent essay writing services at any time of the day.

Plagiarism Free Essays Online

The punitive measures that come with plagiarized content are so harsh, and we understand that. We consequently ensure to write each client’s papers from scratch no matter how urgent the essay is. To acknowledge borrowed content, our quick writer references and cites the work.

Wow Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

So much stress and so little time? Take care of yourself: let us help you with your tasks. We offer all kinds of writing services.


Custom Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission and Business Papers

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing and Proofreading

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Have a homework question? Get help from verified tutors now!