The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assume that the prices of a and b are $15 and $20, respectively. To maximize profits, what combination of a and b should the employer hire?
A)3 of a and 5 of b
B)5 of a and 7 of b
C)7 of a and 7 of b
D)6 of a and 2 of b

Question

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assume that the prices of a and b are $15 and $20, respectively. To maximize profits, what combination of a and b should the employer hire?
A)3 of a and 5 of b 
B)5 of a and 7 of b 
C)7 of a and 7 of b 
D)6 of a and 2 of b

Quizplus · Accepted Answer

The Answer of  The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assume that the prices of a and b are $15 and $20, respectively. To maximize profits, what combination of a and b should the employer hire?
A)3 of a and 5 of b 
B)5 of a and 7 of b 
C)7 of a and 7 of b 
D)6 of a and 2 of b

The Table Gives Marginal Product Data for Resources a and B