Question
Hannah's Sporting Company makes badminton rackets.They are currently producing 24,800 rackets a month using 100 hours of labor and 15 units of capital.The marginal product
Hannah's Sporting Company makes badminton rackets.They are currently producing 24,800 rackets a month using 100 hours of labor and 15 units of capital.The marginal product of labor at 100 hours is 54 rackets.The marginal product of capital at 15 units of machinery is 96 rackets.Hannah's input prices are as follows.The price of labor is $9 per hour and the price of capital is $24 per unit of machinery.Hannah is happy with the level of output, but she wants to be sure she is minimizing cost.To cost minimize she should
Group of answer choices
A.use more labor and less capital.
B.use more capital only since it is more productive.
C.do nothing, her costs are minimized already.
D.use less labor and more capital.
E.use less labor only since it is not very productive.
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