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Beat To A Pulp, Inc. sells paper and uses paper machines and labor in production. It pays $800 per employee and $400 per paper machine. Its marginal product of labor (MPL) is 1600 reams of paper per worker and marginal product of capital (MPK) is 2000 reams of paper per paper machine. Using this information, answer the following questions.
a. What is Beat To A Pulp, Inc.\'s marginal product per dollar spent on labor?
b. What is Beat To A Pulp, Inc.\'s marginal product per dollar spent on capital?
c. Assuming Beat To A Pulp, Inc. wants to maintain the current level of output, to minimize total cost, it should:
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