Mackenzie wants to produce more pies. If she rents another oven for $100, she can make another 200 pies. If she hires another worker at a wage of $15, she can make another 45 pies. What statement is true based on this information?
A) Using either another oven or another worker will minimize costs.
B) She should use another oven to minimize costs.
C) She should hire another worker to minimize costs.
D) The marginal product of labor per dollar spent is less than the marginal product of capital per dollar spent.
Correct Answer:
Verified
Q44: The cost of a unit of labor
Q45: The cost of a unit of capital
Q46: If a firm owns the building that
Q47: If Mackenzie owns the equipment that she
Q48: The cost minimizing combination of inputs is
Q50: Generally, a firm can lower its cost
Q51: The cost of any amount of output
Q52: The cost of inputs that cannot be
Q53: What cost cannot be changed in the
Q54: The amount spent on something that cannot
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents