Problem
A manufacturer of toys is employing fifty workers and using fifteen pieces of equipment to assemble toys. Currently, the marginal product of labor is $5 and the marginal product of capital is $25. Assuming the market prices for labor and capital are $12 and $20 respectively, answer the following:
a) Is this firm maximizing its profit?
b) What should this firm do with respect to its employees and its use of equipment?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.