Checking for optimal combination of inputs

Reference no: EM1371665

The Largo Publishing House uses 400 printers and 200 printing presses to product books. A printer's wage rate is $20, and the price of a printing press is $5,000. The last printer added 20 books to total output, while the last press added 1,000 books to total output. Is the publishing house making optimal input choice? Why or why not? If not, how should the manager of Largo Publishing House adjust input usage?

Reference no: EM1371665

Questions Cloud

Show important information about recession : From anything you may have seen, read or heard - what REGION or regions of the US have been the most affected by this recession?

Discuss relationships between production and cost : Discuss on relationships between production and cost, highlighting the equivalence between diminishing marginal productivity and increasing marginal costs.

Idiosyncratic deal that could negotiated in work place : Discuss an example of an idiosyncratic deal that could be negotiated in the work place and discuss an example of how the use of an agent in negotiation could be beneficial.

Explain how the components of the hawthorne study : Explain how the components of the Hawthorne study are incorporated in current human resource functions?

Checking for optimal combination of inputs : A printer's wage rate is $20, and the price of a printing press is $5,000. The last printer added 20 books to total output, while the last press added 1,000 books to total output.

Political or cultural factors before employees work globally : What economic, political, and cultural factors do HR managers need to consider when sending employees to work internationally? What are the consequences if these factors are not addressed

Information about production function : Always Round Tire has a production function of Q = 300 L.75 K.5. In the short run, if L = 250 and K = 25, what happens to the output of tires if L jumps to 300 and then 350. What law does this illustrate?

Explain which of the following bases of product : Explain Which of the following bases of product differentiation attempts to create the perception that a firm's products or services are unusually valuable

Behavior of profit-maximizing firms : Consider a firm which employs capital and labor as inputs and sells 5,000 units of output per year at the going market price of $10. As well suppose that total labor costs to the firm are $45,000 annually.

User Account

All Pages