Lobo Lighting Corporation currently employs 100 unskilled laboresr, 80 factory technicians, 30;skilled machnists, and 40 skilled electriricans. Lobo feels that the marginal product of the last;unskilled laborer is 400 lights per week, the marginal product of the last factory technician is 450;lights per week, the marginal product of the last skilled machnists is 550 lights per week, and the;marginal product of the last skilled electrician is 600 lights per week. Unskilled laboreres earn;$400 per week, factory technicians earn $500 per week, machinists earn $700 per week, and;electricians earn $750 per week.;Is Lobo using the lowest cost combination of workers to produce its targed output?;Answer: No, Lolo is not using lowest cost combination, if it will use all the unskilled labourers;then the total cost will amount to $116500 which is less than the cost recently incurred i.e.;131000;Question 2: What recommendations can make to assist the company?
Paper#27859 | Written in 18-Jul-2015Price : $27