Problem
The Robotics Corporation produces cuddly toys using only computer-driven robots. The quantity of toys (T) produced per year is given by T = 10 R p where R is the number of robots used during each year of production.
a. If the market price of robots is $2,000, the real interest rate is 0.05, and the depreciation rate on robots is 0.10, what is the firm's implicit rental rate for robot use?
b. What is the firm's total cost function for production of T?
c. If cuddly toys sell for $60, how many will this firm choose to produce?
d. How many robots will the firm employ for the year?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.