An automobile factory employs either assembly line workers or robotic arms to produce automobile engines. In this case, labor and capital are considered
If the marginal product of labor per dollar is greater than the marginal product of capital per dollar, which of the following is true? The firm should
A firm currently produces its desired level of output. Its marginal product of labor is 400, its marginal product of capital is 1,000, the wage rate is $20 and the rental rate of capital is $100. In this case, the firm should