You Have Been Hired to Replace the Manager of a Firm

Essay

You have been hired to replace the manager of a firm that used only two inputs,capital and labor,to produce output.The firm can hire as much labor as it wants at a wage of $5 per hour and can rent as much capital as it wants at a price of $50 per hour.After you look at the company books,you learn that the company has been using capital and labor in amounts that imply a marginal product of labor of 50 and a marginal product of capital of 100.Do you know why the firm hired you?