Mr. Kamal is an owner of the communication center at Y junction and uses four word processors and two typewriters to produce reports. The marginal product of a typewriter is 50 pages per day, and the marginal product of a word processor is 500 pages per day. The rental price of a typewriter is Rs.1 per day, whereas the rental price of a word processor is Rs.50 per day. Is Mr. Kamal utilizing type writers and word processors in a cost-minimizing manner? Which service process is more profitable? Type writer or word processing? Justify your answer.

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Mr. Kamal is an owner of the communication center at Y junction and
uses four word processors and two typewriters to produce reports. The
marginal product of a typewriter is 50 pages per day, and the marginal
product of a word processor is 500 pages per day. The rental price of
a typewriter is Rs.1 per day, whereas the rental price of a word
processor is Rs.50 per day. Is Mr. Kamal utilizing type writers and
word processors in a cost-minimizing manner? Which service process is
more profitable? Type writer or word processing? Justify your answer.

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