Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions. The price of labor is PL, and that of capital is PC. The marginal product of labor is MPL, and that of capital is MPC. The firm sells its product competitively at a price of PX. Which of the following must pertain if the firm is to minimize the cost of producing any output?a. may be maximizing profits, but it is not minimizing costs b. may be minimizing costs, but it is not maximizing profits. c. is neither minimizing costs nor maximizing profits. d. is minimizing costs and maximizing profits.

In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.

Afarmer is an example of what kind of producer?

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?