For the following questions, assume that the marginal product of capital = 
and the marginal product of labor = 
.
a. If the firm is hiring 10 workers at $100 per worker and 5 units of capital at $50 per unit, is the firm minimizing its cost of production? If not, what should the firm do?
b. If the firm is hiring 10 workers at $100 per worker and 5 units of capital at $200 per unit, is the firm minimizing its cost of production? If not, what should the firm do?
c. If the firm is minimizing its costs of production by hiring an equal number of workers and units of capital, what is the slope of the isocost line?
Definitions:
Sales Forecasts
Predictions of the future sales revenue of a product or service within a specified time frame, based on historical data, market trends, and economic conditions.
Evaluate Strengths
The process of identifying and assessing the strong points or advantages that an individual, company, or product possesses.
Competitors' Brands
Brands offered by competing companies in the same industry.
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