1. Three machines are employed in an isolated area. They each produce 2000 units of output per month, the first requiring $20,000 in raw materials, the second $25,000, and the third $28,000. What would you expect to be the monthly charge for the first and second machines if the services of the third machine can be hired at a price of $9000 per month? Which parts of the charges for the first two machines is economic rent?
2. Why do you think, even though high school education in other countries is widely considered to be better than that in the United States, every country sends its best and brightest to the United States to get their Doctorate degrees?