Gamma Corporation, one of the firms that retain you as a financial analyst, is considering

buying out Beta Corporation, a small manufacturing firm that is now barely operating at a

profit. You recommend the buyout because you believe that new management could

substantially reduce production costs, and thereby increase profit to a quite attractive level.

You collect the following product information to convince the CEO at Gamma Corporation

that Beta is indeed operating inefficiently:

MPL = 10 w = $20

MPK = 15 r = $15

Explain how these data provide evidence of inefficiency. How could the new manager of

Beta Corporation improve efficiency?

Need explanation along with conclusion and DON'T USE ANY AI BOT OTHERWISE I WILL DIRECTLY REPORT THE ANSWER STRICTLY PROHIBITED.