Your company utilizes both employees (L) and specialized robots (R) in its production process. The hourly wage of employees is $25, 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 employees (L)

Marginal product of labor (MP_L)

Number of robots (R)

Marginal product of robots (MP_R)

1

35

1

450

2

30

2

400

3

25

3

350

4

20

4

300

5

15

5

250

6

10

6

200

7

5

7

150

a.Given the much higher productivity of robots, why would the company consider using employees in its production?

b.Given its budget, the company is currently using five employees and two robots; is this an ideal combination of inputs? Why or why not?

c.During its slow season, the company reduces its employees to four; what would be the optimal number of robots to use in this situation?

d.During the normal season when the company uses five employees, what would be the optimal number of robots to use?