Assume that an appliance manufacturer is employing variableresourcesxandYin such amounts that the MRPs of the...

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Economics

Assume that an appliance manufacturer is employing variableresources

x

and

Y

in such amounts that the MRPs of the last units of

x

and

Y

employed are

$80

and

$70

, respectively. Resource

x

can be hired at

$40

per unit and resource

Y

at

$60

per unit. The firm Multiple Choice should hire more of

x

and less of

Y

. should hire more of both

x

and

Y

. is using the least-costly combination of X and Y but couldincrease its profits by employing less of both X and Y.

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