If the Marginal Product of Labor Is 45 Units of Output

question 33

Essay

If the marginal product of labor is 45 units of output and the marginal product of capital is 56 units of output while the wage rate is $20 per worker and the cost of capital is $28 per machine, are these two inputs being used in the least-cost combination and what should be done if they are not?

---

Definitions:

Human Skills

The ability to interact effectively and harmoniously with other people.

Management Levels

The different layers of management in an organization, typically including top-level (executives), middle, and front-line (supervisory) managers, each with specific responsibilities.

Technical Skills

The specialized knowledge and expertise required to perform specific tasks, particularly relating to operational and scientific fields.

Conceptual Skills

The ability to understand complex ideas and the interconnections between them, crucial for strategic planning and problem solving.