Solving for Optimal Combination of Inputs

The Largo Publishing House uses 400 printers and 200

printing presses to produce books. A printer’s wage rate is $20, and the price

of a printing press is $5,000. The last printer added 20 books to total output,

while the last press added 1,000 books to total output. Is the publishing house

making the optimal input choice? Why or why not? If not, how should the manager

of Largo Publishing House adjust input usage?

Solving for Optimal Combination of Inputs

The Largo Publishing House uses 400 printers and 200

printing presses to produce books. A printer’s wage rate is $20, and the price

of a printing press is $5,000. The last printer added 20 books to total output,

while the last press added 1,000 books to total output. Is the publishing house

making the optimal input choice? Why or why not? If not, how should the manager

of Largo Publishing House adjust input usage?

Solving for Optimal Combination of Inputs

The Largo Publishing House uses 400 printers and 200

printing presses to produce books. A printer’s wage rate is $20, and the price

of a printing press is $5,000. The last printer added 20 books to total output,

while the last press added 1,000 books to total output. Is the publishing house

making the optimal input choice? Why or why not? If not, how should the manager

of Largo Publishing House adjust input usage?

The Largo Publishing House uses 400 printers and 200

printing presses to produce books. A printer’s wage rate is $20, and the price

of a printing press is $5,000. The last printer added 20 books to total output,

while the last press added 1,000 books to total output. Is the publishing house

making the optimal input choice? Why or why not? If not, how should the manager

of Largo Publishing House adjust input usage?