Consider the information in the following table for Jill Johnson's restaurant: Marginal product of capital..............................4,000 Marginal product

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Consider the information in the following table for Jill Johnson's restaurant:

Marginal product of capital..............................4,000

Marginal product of labor..................................100

Wage rate.....................................................$10

Rental price of pizza ovens...............................$500

Briefly explain whether Jill is minimizing costs. If she is not minimizing costs, explain whether she should rent more ovens and hire fewer workers or rent fewer ovens and hire more workers.

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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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Question Posted: Nov 01, 2017 07:11 AM

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Consider the information in the following table for Jill Johnson's restaurant: Marginal product of capital..............................4,000 Marginal product

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To minimize costs Jill should be at a point where Plugging in the numbers into our equation ...View the full answer

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