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6. Critical analysis Q8 A dressmaker uses labor and capital (sewing machines) to produce dresses in a competitive market. Suppose the last unit of labor hired cost $1,000 per month and increased output by 500 dresses. The last unit of capital hired (rented) cost $500 per month and increased output by 400 dresses. The marginal product per dollar spent on the last unit of labor is 0.6 0.6 , and the marginal product per dollar spent on the last unit of capital is The dressmaker currently minimizing unit costs. In order to minimize unit costs, what strategy should the dressmaker undertake? The dressmaker should increase units of capital and decrease units of labor utilized in production. The dressmaker should increase units of labor and decrease units of capital utilized in production. The dressmaker is already minimizing unit costs, so no changes are needed. Grade It Now Save & Continue Continue without saving

6. Critical analysis Q8 A dressmaker uses labor and capital (sewing machines) to produce dresses in a competitive market. Suppose the last unit of labor hired cost $1,000 per month and increased output by 500 dresses. The last unit of capital hired (rented) cost $500 per month and increased output by 400 dresses. The marginal product per dollar spent on the last unit of labor is 0.6 0.6 , and the marginal product per dollar spent on the last unit of capital is The dressmaker currently minimizing unit costs. In order to minimize unit costs, what strategy should the dressmaker undertake? The dressmaker should increase units of capital and decrease units of labor utilized in production. The dressmaker should increase units of labor and decrease units of capital utilized in production. The dressmaker is already minimizing unit costs, so no changes are needed. Grade It Now Save & Continue Continue without saving

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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6. Critical analysis Q8 A dressmaker uses labor and capital (sewing machines) to produce dresses in a competitive market. Suppose the last unit of labor hired cost $1,000 per month and increased output by 500 dresses. The last unit of capital hired (rented) cost $500 per month and increased output by 400 dresses. The marginal product per dollar spent on the last unit of labor is 0.6 0.6 , and the marginal product per dollar spent on the last unit of capital is The dressmaker currently minimizing unit costs. In order to minimize unit costs, what strategy should the dressmaker undertake? The dressmaker should increase units of capital and decrease units of labor utilized in production. The dressmaker should increase units of labor and decrease units of capital utilized in production. The dressmaker is already minimizing unit costs, so no changes are needed. Grade It Now Save & Continue Continue without saving
Transcribed Image Text:6. Critical analysis Q8 A dressmaker uses labor and capital (sewing machines) to produce dresses in a competitive market. Suppose the last unit of labor hired cost $1,000 per month and increased output by 500 dresses. The last unit of capital hired (rented) cost $500 per month and increased output by 400 dresses. The marginal product per dollar spent on the last unit of labor is 0.6 0.6 , and the marginal product per dollar spent on the last unit of capital is The dressmaker currently minimizing unit costs. In order to minimize unit costs, what strategy should the dressmaker undertake? The dressmaker should increase units of capital and decrease units of labor utilized in production. The dressmaker should increase units of labor and decrease units of capital utilized in production. The dressmaker is already minimizing unit costs, so no changes are needed. Grade It Now Save & Continue Continue without saving
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