Suppose a firm has two plants, A and B, each producing the same product but using different production processes. After analyzing production reports a UNC Charlotte intern realizes that the marginal product of labor in plant A is greater than the marginal product of labor in plant B. What should he recommend as a short-run remedy? Move labor from plant B to plant A. O It cannot be determined from the information given. O Add more capital to plant B. O Move labor from plant A to plant B.

Suppose a firm has two plants, A and B, each producing the same product but using different production processes. After analyzing production reports a UNC Charlotte intern realizes that the marginal product of labor in plant A is greater than the marginal product of labor in plant B. What should he recommend as a short-run remedy? Move labor from plant B to plant A. O It cannot be determined from the information given. O Add more capital to plant B. O Move labor from plant A to plant B.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 4P

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