The following table shows the number of machines used and the daily output of a firm manufacturing notebooks.

a)Calculate the marginal product of capital at different levels of employment.If the market price of each notebook is $3,calculate the value of the marginal product of capital.
b)How many machines should the firm rent if the rental price of each machine is $12 per day? How many machines should the firm rent if the rental price increases to $30 per day?

Question

The following table shows the number of machines used and the daily output of a firm manufacturing notebooks.
  
a)Calculate the marginal product of capital at different levels of employment.If the market price of each notebook is $3,calculate the value of the marginal product of capital.
b)How many machines should the firm rent if the rental price of each machine is $12 per day? How many machines should the firm rent if the rental price increases to $30 per day?

Quizplus · Accepted Answer

The Answer of The following table shows the number of machines used and the daily output of a firm manufacturing notebooks.
  
a)Calculate the marginal product of capital at different levels of employment.If the market price of each notebook is $3,calculate the value of the marginal product of capital.
b)How many machines should the firm rent if the rental price of each machine is $12 per day? How many machines should the firm rent if the rental price increases to $30 per day?

The Following Table Shows the Number of Machines Used and the Daily