Consider the Beiswanger Company, a small firm engaged in engineerng analysis. Beiswanger’s president has estimated that the firm’s output per month (Q) is related in the following way to the number of engineers € and technicians used (T): Q = 20E – E^2 + 12T – 0.5T^2 . The monthly wage of an engineer is $4,000, and the monthly wage of a technician is $2,000. President allots $28,000 per month for the combined wages of engineers and technicians.
Question 3: If the president is to maximize output, he must choose a bundle of engineers and technicians such that
a. MP^e / P^e = MP^t / P^t
b. MP^e / P^t = MP^t / P^e
c. MP^t / P^e = MP^e / P^t
d. None of the above