A firm faces the following total product curves depending on how much capital it employs:

a. Suppose that the firm currently employs 1 unit of capital and 3 of labor.
Compute MRTSLK. Compute MPL. Compute MPK.
b. Suppose that the firm currently employs 2 units of capital. The price of capital is $4 per unit and the price of labor is $10 per unit. What is the short-run total cost of producing 263 units of output? What is the long-run total cost of producing 263 units of output?
c. Suppose that the price of capital increases to $20 per unit and the price of labor falls to $5 per unit. Now what is the long-run total cost of producing 263 units of output?
d. Beginning with 1 unit of capital and 2 units of labor, does this production function exhibit increasing, constant, or decreasing returns to scale? Which way does the long-run average cost curveslope?

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K 1 Unit K 2 Units K 3 Units Quantity of Total Quantity of Total Quantity of Total Labor Product Labor Product 123 187 237 263 286 306 323 Labor Product 100 152 193 215 233 249 263 139 193 263 319 366 407 410