7.17. A paint manufacturing company has a production function For this production function MPK ! 1 and The firm faces a price of labor w that equals $1 per unit and a price of capital services r that equals $50 per unit.

a) Verify that the firm’s cost-minimizing input combination to produce Q ! 10 involves no use of capital.

b) What must the price of capital fall to in order for the firm to use a positive amount of capital, keeping Q at 10 and w at 1?

c) What must Q increase to for the firm to use a positive amount of capital, keeping w at 1 and r at 50?