1. Suppose a firm’s production function is given by Q = 2KL, where K is capital and L is labor. What is the marginal product of labor when 4 units of capital are employed?
2. The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal product of capital is 100. The marginal rate of technical substitution of hours of labor for hours of machine capital is?
3. A widget company firm hires labor and rents machines to produce its output. The hourly wage rate is $10, and the rental rate of machines is $50. In equilibrium, the marginal product of labor is 300 units of output per period. The marginal product of machines is
4. A manufacturer of lasers reports that the marginal product of labor is 60 units of output per hour of labor and that the marginal rate of technical substitution of labor for capital is 3/2. The marginal product of capital is