Question
WordBoss, Inc. uses 4 word processors and 2 desk-top computers to generate reports. The marginal product of a word processor is 50 pages per hour
WordBoss, Inc. uses 4 word processors and 2 desk-top computers to generate reports. The marginal product of a word processor is 50 pages per hour and the marginal product of a desk-top computer is 500 pages per hour.
- If the rental price of a word processor is $1 per hour and the rental price of a desk-top computer is $10 per hour, is WordBoss utilizing word processors and desk-top computers efficiently?
- If the price of each page produced is $0.10, what is the value marginal product of a word processor?
- If the price of each page produced is $0.10, what is the value marginal product of a desk-top computer?
- If the rental price of a desk-top computer decreases to $5 per hour, how should WordBoss respond?
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Business Statistics for Contemporary Decision Making
Authors: Ken Black
6th Edition
978-0470409015, 9780470559062, 470409010, 470559063, 978-0470910184
