Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Please see attached image for question, thanks. 1. Your company utilizes both employees (L) and specialized robots (R) in its production process. The hourly wage

Please see attached image for question, thanks.

image text in transcribed
1. Your company utilizes both employees (L) and specialized robots (R) in its production process. The hourly wage of employees is $20, and the hourly cost of operating a robot is $250. The table below describes how the number of each type of input affects output or product (in a marginal way). Number of Marginal product Number of robots Marginal product employees (L) of labor (MPL) (R) of robots (MPR) HOWAWN- 36 525 32 500 28 475 24 450 20 425 400 12 -JOHANNE 375 a. Given the much lower productivity of employees, why would the company ever consider using employees at all in its production? b. Given its budget, the company is currently using five employees and four robots; is this an ideal combination of inputs? Why or why not? c. During its slow season, the company reduces its employees to two; what would be the optimal number of robots to use in this situation? d. During the normal season when the company uses four robots, what would be the optimal number of employees to use

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Economics questions