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Kitty [74]
3 years ago
12

The wage rate is $10 per hour and the last worker hired by the firm increased output by 100 units. Computers rent for $100 per h

our and the last computer rented by the firm increased output by 2,000 units. To minimize costs the firm should _________.
Business
1 answer:
const2013 [10]3 years ago
5 0

Answer:

To minimise cost, the firm should lay off worker and rent more computer as it give more output per dollar invested on it.  This reduce the fixed cost of the company drastically and increase the production of the company.  The marginal cost of production and marginal revenue are economic parameter, which help to determine the amount of output and price per unit of input that will maximise the profits. The point at which marginal revenue is equal to marginal cost maximise the profit.

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Question 2 of 10
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