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The production function for producing computer monitors is as follows: = 2 2 Q = total computer monitors produced per day L = worker-hours per
The production function for producing computer monitors is as follows: = 2 2 Q = total computer monitors produced per day L = worker-hours per day K = machine-hours per day The company presently employs 6 labor-hours daily (L = 6) and operates machinery for 4 hours each day (K = 4). Assuming a selling price of $50 per computer monitor to retailers, labor costs at $20 per hour, and machinery leased at $120 per hour. a. Calculate MPL and MPK when L = 6 and K = 4. b. Is the firm currently operating at the lowest cost? If not, how can it lower the cost? c. Calculate MRPL and MRPK when L = 6 and K = 4
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