Talco Inc. ,a manufacturer of steel pipes,uses 500 workers and 100 machines to produce 10,000 pipes,each 28mm thick,every day.Its operations research team reports that the marginal productivity of labor is 40 steel pipes while that of capital is 240 steel pipes.If workers are paid $8 per day and the rental cost of capital is $40 per day,examine whether the company is following the golden rule of cost minimization.

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The Answer of Talco Inc. ,a manufacturer of steel pipes,uses 500 workers and 100 machines to produce 10,000 pipes,each 28mm thick,every day.Its operations research team reports that the marginal productivity of labor is 40 steel pipes while that of capital is 240 steel pipes.If workers are paid $8 per day and the rental cost of capital is $40 per day,examine whether the company is following the golden rule of cost minimization.

Talco Inc ,A Manufacturer of Steel Pipes,uses 500 Workers and 100