A company uses two variable inputs labor l and materials m


A company uses two variable inputs, labor (L) and materials (M), to produce its output. At the companys current level of output: CL = $10 / unit MPL = 25 CM = $2 / unit MPM = 4 a. Decide whether the firm is operating efficiently, given that its objective is to minimize the cost of producing the given the level of output b. Decide what changes (if any) in the relative proportions of labor and materials are required to operate efficiently

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Microeconomics: A company uses two variable inputs labor l and materials m
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