Automated Labs uses 5 workers and 200 machines to produce its product. The marginal product of the last workers is 200 units of output per day; the marginal product of the last machine is 400 units of output per day. Workers are each paid $100 per day, and the rental price of each machine is $300 per day. a. What is the marginal product per dollar spent on a worker? b. What is the marginal product per dollar spent on a machine? Is Automated Labs utilizing workers and machines in the cost-minimizing manner? What should it to minimize its costs? Explain. C.
Automated Labs uses 5 workers and 200 machines to produce its product. The marginal product of the last workers is 200 units of output per day; the marginal product of the last machine is 400 units of output per day. Workers are each paid $100 per day, and the rental price of each machine is $300 per day. a. What is the marginal product per dollar spent on a worker? b. What is the marginal product per dollar spent on a machine? Is Automated Labs utilizing workers and machines in the cost-minimizing manner? What should it to minimize its costs? Explain. C.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please type answer not by pen paper
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education