The wage rate of Zeta Corp. employees is 20 million per month, while the cost of one unit of machine is million per month. Currently, Zeta Corp. produces 10 units of output and employs 20 employees and use units of production machines. This combination of factors of production is the most efficient for the company. So If Zeta Corp. wants to increase its output to 200 units but it cannot change its number of machines (from 5 units), what is the optimal number of employees and production costs of Zeta Corp.?

The wage rate of Zeta Corp. employees is 20 million per month, while the cost of one unit of machine is million per month. Currently, Zeta Corp. produces 10 units of output and employs 20 employees and use units of production machines. This combination of factors of production is the most efficient for the company. So If Zeta Corp. wants to increase its output to 200 units but it cannot change its number of machines (from 5 units), what is the optimal number of employees and production costs of Zeta Corp.?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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