Business, 11.02.2020 03:28 gennhill14
You were recently hired to replace the manager of the Roller Division at a major conveyor-manufacturing firm, despite the manager’s strong external sales record. Roller manufacturing is relatively simple, requiring only labor and a machine that cuts and crimps rollers. As you begin reviewing the company’s production information, you learn that labor is paid $12 per hour and the last worker hired produced 95 rollers per hour. The company rents roller cutters and crimping machines for $15 per hour, and the marginal product of capital is 135 rollers per hour. Should you change the mix of capital and labor, and if so, how should it change?
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You were recently hired to replace the manager of the Roller Division at a major conveyor-manufactur...
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