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1. Consider a rm with the production function (1 = F (K, L) = K SIP-5. This results in the marginal product functions MP1, =
1. Consider a rm with the production function (1 = F (K, L) = K \"SIP-5. This results in the marginal product functions MP1, = ER \"5170-5 and MPK = %K'-75L'5. The wage rate is 4 and the rental rate is 6. The rm wants to produce 10,000 units. What combination of labour and capital should it use? (6 marks)
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