HK Sweaters, Incorporated employs labor at a wage rate of $12 per hour and rents capital for $30 per hour. At its current level of labor and capital, the marginal product of labor is 24 and the marginal product of capital is 60. Is the firm currently maximizing profit? Explain.

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The Answer of HK Sweaters, Incorporated employs labor at a wage rate of $12 per hour and rents capital for $30 per hour. At its current level of labor and capital, the marginal product of labor is 24 and the marginal product of capital is 60. Is the firm currently maximizing profit? Explain.

HK Sweaters, Incorporated Employs Labor at a Wage Rate of $12