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Assume labor and machines are used in the production of an output.   The marginal product of the last worker h...

Assume labor and machines are used in the production of an output.   The marginal product of the last worker hired was 175 units a day and the marginal product of the last machine employed was 850 units a day. The wage to hire a worker for a day is $100 while the cost to employ the machine for a day was $400. Assuming perfect competition what would you recommend the firm do to become more efficient?

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Page No. Date : a The from should employ the machine as compare to the workers because the lost of the machine is equivalent

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