Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Capitalism Its Fall And Rise In The Twentieth Century

Authors: Jeffry A Frieden

1st Edition

0393058085, 9780393058086

More Books

Students also viewed these Economics questions

Question

f. What subspecialties and specializations does the person list?

Answered: 1 week ago

Question

7. How can an interpreter influence the utterer (sender)?

Answered: 1 week ago

Question

8. How can an interpreter influence the message?

Answered: 1 week ago