Is lps ink making the optimal input choice

Reference no: EM133367705

Last Printer Standing, Incorporated (LPS Ink) uses 400 printers and 200 printing presses to print and bind books. Suppose your compensation rate for employees on the production line is $40/hour and the hourly rental rate of a printing press is $3,000. The last employee-hour added 20 books to total output, while the last hour of printing press usage added 1,000 books to the total output. (These figures will not hold true for inframarginal employee hours or printer usage since the Law of Diminishing Marginal Product holds for both types of inputs.)

Is LPS Ink making the optimal input choice? Why or why not? If not, how should the manager of LPS Ink adjust input usage to produce the current production level at the lowest possible total cost? (i.e., fewer, or more, or the same number of printers? Fewer, or more, or the same number of employees?) You may assume that there is some substitution of labor for capital and vice versa possible in this production process. Explain.

Reference no: EM133367705

Questions Cloud

Discuss how social work profession responded to crisis : Discuss how the social work profession responded to the crisis and evaluate the response's effectiveness with social work vulnerable and marginalized population

Draw the foreign countrys ppf and show the closed-economy : Draw the Foreign countrys PPF and show the closed-economy equilibrium. Please label both axes and In your picture in (1) above, show the Foreign country's CPF

How is culture produced and reproduced : How is culture produced and reproduced? The social construction of reality is a framework that helps us begin to answer this question.

Explain the importance of intimate relationships : Discuss the meaning of intimacy, explain the importance of intimate relationships, and comment on the emotional power that relationships hold for us.

Is lps ink making the optimal input choice : Is LPS Ink making the optimal input choice? Why or why not? If not, how should the manager of LPS Ink adjust input usage to produce the current production

Discuss what you learned from either of the panel discussion : discuss what you learned from either of the Panel Discussions. (3 points) Panel Discussion: Wine and Jazz in Niagara

What factors influence meaning : What factors influence meaning? How so? Apply one or two concepts, ideas or theories to support and discuss the images in the PowerPoint.

Discuss if sabah presentation to the board is an example : Define Agency Problems, Discuss if Sabah's presentation to the board is an example of an Agency Problem. Discuss Sabah's concerns about the Mexican Pesos

Impact of poverty on educational outcomes on children : Include a short works cited page at the end. Please use the MLA parenthetical citation style. Cite in the body of the text. For example: (Smith p. 55, 2022)

User Account

All Pages