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5. A manufacturer of toys is employing fifty workers and using fifteen pieces of equip- ment to assemble toys. Currently, the mar- ginal product of
5. A manufacturer of toys is employing fifty workers and using fifteen pieces of equip- ment to assemble toys. Currently, the mar- ginal product of labor is $5 and the marginal product of capital is $25. Assuming the market prices for labor and capital are $12 and $20 respectively, answer the following: a) Is this firm maximizing its profit? b) What should this firm do with respect to its employees and its use of equipment
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