Problem
Suppose that the current wage rate is $20 per hour, the rental rate of land is $10,000 per acre, and the rental rate of capital is $2,500. The manager of a firm determines that the value of the marginal product of labor is $400, the value of the marginal product of an acre of land is $200,000, and the value of the marginal product of capital is $4,000. Is the firm maximizing profit? Explain your response.
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.