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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