Question 1. If the price of capital is $24, the price of labor is $15, and the marginal product of capital is 16. Using the above information, answer the following
a- The least costly combination of capital and labor requires that the marginal product of labor be ________.?
b- At the least cost point in a, the slope of the isocost line will be______ ?
Question 2. The demand equation is: Qd = 500 - 1/2 P.
Calculate the point price elasticity of demand when price is $100.
Calculate the arc price elasticity of demand when price increases from 100 to $300.