Lobo Lighting Corporation currently employs 100 unskilled laborers, 80 factory technicians, 30 skilled machinists, and 40 skilled electricians. Lobo management believes that the marginal product of the last unskilled laborer is 480 lights per week, the marginal product of the last factory technician is 450 lights per week, the marginal product of the last skilled machinist is 560 lights per week, and the marginal product of the last skilled electrician is 525 lights per week. Unskilled laborers earn $400 per week, factory technicians earn $500 per week, machinists earn $700 per week, and electricians earn $750 per week. Calculate the marginal product per dollar input cost for all worker types. Marginal Product per Dollar Input Cost Unskilled laborers Factory technicians Skilled machinists Skilled electricians Is Lobo using the lowest-cost combination of workers to produce its targeted output? No O Yes

Lobo Lighting Corporation currently employs 100 unskilled laborers, 80 factory technicians, 30 skilled machinists, and 40 skilled electricians. Lobo management believes that the marginal product of the last unskilled laborer is 480 lights per week, the marginal product of the last factory technician is 450 lights per week, the marginal product of the last skilled machinist is 560 lights per week, and the marginal product of the last skilled electrician is 525 lights per week. Unskilled laborers earn $400 per week, factory technicians earn $500 per week, machinists earn $700 per week, and electricians earn $750 per week. Calculate the marginal product per dollar input cost for all worker types. Marginal Product per Dollar Input Cost Unskilled laborers Factory technicians Skilled machinists Skilled electricians Is Lobo using the lowest-cost combination of workers to produce its targeted output? No O Yes

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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