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Question: supermarket chains like coles and woolworths are replacing cashiers with...

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Supermarket chains like Coles and Woolworths are replacing cashiers with self-service registers. Currently, the marginal product of another cashier is 48 customers served per hour; the marginal product of another self-service registers is 32 customers served per hour. A cashier can be hired for a wage of $15 and a self-service registers rents for $12. 

(a) Are Coles and Woolworths currently minimising the cost of serving its customers?

(b) Could Coles and Woolworths improve its profits by changing its input mix? Show why or why not this could be the case.

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