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Business, 18.03.2021 23:10 hjenn31

A bottling company uses two inputs to produce bottles of the soft drink​ Sludge: bottling machines​ (K) and workers​ (L). The isoquants have the usual smooth shape. The machines cost​ $1,000 per day to run​ (r), and the workers earn​ $200 per day​ (w). At the current level of​ production, the marginal product of machines ​(​) is an additional bottles per​ day, and the marginal product of labor ​(​) is more bottles per day. Is this firm producing at minimum​ cost? If it is minimizing​ cost, explain why. If it is not minimizing​ cost, explain how the firm should change the ratio of inputs it uses to lower its cost. The bottling company

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A bottling company uses two inputs to produce bottles of the soft drink​ Sludge: bottling machines​...

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