1. Your company utilizes both employees (L) and specialized robots (R) in its production process. The hourly wage of employees is $25, and the hourly cost of operating a robot is $175. The table below describes how the number of each type of input affects output or product (in a marginal way).

Number of employees (L)	Marginal product of labor (MPL)	Number of robots (R)	Marginal product of robots (MPR)
1	125	1	840
2	120	2	822.5
3	115	3	805
4	110	4	787.5
5	105	5	770
6	100	6	752.5
7	95	7	735

a. Given the much higher productivity of robots, why would the company ever consider using employees at all in its production?

b. When it started out, the company used three employees and five robots; is this an ideal combination of inputs? Why or why not?

c. During its busy season, the company increases its employees to five; provided it had a sufficient budget, what would be the optimal number of robots to use in this situation?

d. During the normal season when the company uses three robots, what would be the optimal number of employees to use?