Jamie owns a Nail Salon. The marginal product of the labor Jamieemploys (MPL) is equals 20 pedicures per week and the marginalproduct of her salon's capital (MPK) equalp 50. Jamie pays heremployee $600 per week and faces a price of capital is $1500 perweek. Then:Select one:a. Jamie is minimizing her costs because (MPL/PL) = (MPK/PK)b.Jamie is not minimizing her costs because (MPL x PL) <(MPK x PK)O c. Jamie is minimizing her costs because she is a price-taker inthe markets for labor and capitalO d. Jamie is not minimizing her costs because (MPL x PL) =(MPK x PK)

Marginal product is the change in total product due to an additional unit of input. Marginal…

Jamie owns a Nail Salon. The marginal product of the labor Jamie employs (MPL) is equals 20 pedicures per week and the marginal product of her salon's capital (MPK) equalp 50. Jamie pays her employee $600 per week and faces a price of capital is $1500 per week. Then: Select one: O a. Jamie is minimizing her costs because (MPL/PL) = (MPK/PK) b. Jamie is not minimizing her costs because (MPL x PL) < (MPK x PK) O c. Jamie is minimizing her costs because she is a price-taker in the markets for labor and capital O d. Jamie is not minimizing her costs because (MPL x PL) = (MPK x PK)

Jamie owns a Nail Salon. The marginal product of the labor Jamie employs (MPL) is equals 20 pedicures per week and the marginal product of her salon's capital (MPK) equalp 50. Jamie pays her employee $600 per week and faces a price of capital is $1500 per week. Then: Select one: O a. Jamie is minimizing her costs because (MPL/PL) = (MPK/PK) b. Jamie is not minimizing her costs because (MPL x PL) < (MPK x PK) O c. Jamie is minimizing her costs because she is a price-taker in the markets for labor and capital O d. Jamie is not minimizing her costs because (MPL x PL) = (MPK x PK)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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