How can the firm maximize output or minimize costs

Reference no: EM13234956

Suppose that the marginal product of the last worker employed by the Delicious Ice Cream Company is 300 units of output per day and the daily wage that the firm must pay is $50, while the marginal product of the last ice cream machine that the firm rents is 200 units of output per day and the daily rental price of the machine is $25.

(a) Is the firm maximizing output or minimizing costs?

(b) How can the firm maximize output or minimize costs?

Reference no: EM13234956

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