Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $100 and $60, respectively. Resource X can be hired at $50 per unit and resource Y at $80 per unit. The firm Multiple Choice should hire more of X and less of Y should hire more of both X and Y is producing with the least-costly combination of X and Y but could increase its profts by employing more of X and less of V is using the least costly combination of X and Y but could increase its profits by employing less of both X and Y
Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $100 and $60, respectively. Resource X can be hired at $50 per unit and resource Y at $80 per unit. The firm Multiple Choice should hire more of X and less of Y should hire more of both X and Y is producing with the least-costly combination of X and Y but could increase its profts by employing more of X and less of V is using the least costly combination of X and Y but could increase its profits by employing less of both X and Y
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 8SCQ: Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are...
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