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Consider the information in the following table for GAD's restaurant. Marginal product of capital 3,000 pizzas per oven Marginal product of labor 1,200 pizzas per
Consider the information in the following table for GAD's restaurant.
Marginal product of capital 3,000 pizzas per oven
Marginal product of labor 1,200 pizzas per worker
Wage rate $300 per week
Rental price of ovens $600 per week
Briefly explain whether Gad is minimizing costs. If he is not minimizing costs, explain whether he should rent more ovens and hire fewer workers or rent fewer ovens, and hire more workers.
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