How much must it pay for each hour it uses its capital

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Reference no: EM13214770

1) A cost-minimizing firm can produce 4056 units of output when it uses 100 units of labor and 35 machines and 4071 units when it uses 101 units of labor and 35 machines. If the wage rate is $3 and the rental rate of capital is $10, what must the marginal product of capital be here?

2) If the George Firm is minimizing costs, its RTS is 1.5, and it pays its workers $30 per hour, how much must it pay for each hour it uses its capital?

Reference no: EM13214770

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