Martha Owns a Factory Which Can Produce 150 Coffee Mugs

question 5

Essay

Martha owns a factory which can produce 150 coffee mugs using the following five combinations of labor and capital:
If the price of capital is $5 per unit and the price of labor is $3 per unit, calculate the total cost of producing 150 coffee mugs under each technology. Which technology would a profit-maximizing firm use?

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Definitions:

Spiny Water Fleas

A type of invasive aquatic crustacean that impacts freshwater food webs and can clog fishing gear and water intake structures.

Zooplankton

Microscopic organisms drifting in oceans, seas, and bodies of fresh water, which serve as a crucial food source for many marine species.

Invasive Species

Non-native organisms that significantly alter or damage the habitats they invade, often outcompeting local species and leading to biodiversity loss.

Habitat Fragmentation

The process by which habitat loss results in the division of large, continuous habitats into smaller, more isolated remnants.