Suppose Firm A has a budget of P1.5 million pesos in outsourcing inputs, labor and machines, that would lend support in its 1 year operation. Suppose further that the cost of labor for 1 year is P150,000 and for a machine is P200,000. If it decides to hire 6 laborers, how many machines would it accept?
Suppose Firm A has a budget of P1.5 million pesos in outsourcing inputs, labor and machines, that would lend support in its 1 year operation. Suppose further that the cost of labor for 1 year is P150,000 and for a machine is P200,000. If it decides to hire 6 laborers, how many machines would it accept?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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1. Suppose Firm A has a budget of P1.5 million pesos in outsourcing
inputs, labor and machines, that would lend support in its 1 year
operation. Suppose further that the cost of labor for 1 year is P150,000
and for a machine is P200,000. If it decides to hire 6 laborers, how
many machines would it accept?
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