Question 9 Pepsi uses two inputs to produce soda: bottling machines K and workers L. The machine costs $1000 per day to run and each worker is paid $200 per day. At the current level of production, the marginal product of a machine is an additional 200 cases of soda per day and the marginal product of a worker is an additional 50 cases per day. Is this firm minimizing cost? If not, explain how it should adjust its input usage.

Question 9 Pepsi uses two inputs to produce soda: bottling machines K and workers L. The machine costs $1000 per day to run and each worker is paid $200 per day. At the current level of production, the marginal product of a machine is an additional 200 cases of soda per day and the marginal product of a worker is an additional 50 cases per day. Is this firm minimizing cost? If not, explain how it should adjust its input usage.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 6P

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