# Variable inputs Hernandez Corp uses two variable inputs, X and Y, to produce its final product, cano

Variable inputs

Hernandez Corp uses two variable inputs, X and Y, to

produce its final product, canoes Its engineering department has estimated the

marginal product functions for inputs X and Y as follows:

MPx = Y/X

MPy = 4 X/Y

Where X and Y denote, respectively, the quantity in hours of

inputs X and Y used

At present Hernandez Corp pays $40 per hour for input X and

$10 per hour for input Y It is using 200 hours of X and 100 hours of Y per

day

a Write a paragraph explaining how the Hernandez Corp

finds the least cost combination of inputs for producing a given rate of

output

b Using the data provided above, determine if the Hernandez

Corp is using a cost minimizing combination of inputs Explain your

answer/show your work If your answer is no, how should the input combination

be adjusted?