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Assume that a production function is Q=K^0.01 x L^0.99. Let the cost of capital r=1,000,000 and the wage w=1. Should the firm use any capital

Assume that a production function is Q=K^0.01 x L^0.99. Let the cost of capital r=1,000,000 and the wage w=1. Should the firm use any capital to produce as it contributes so little to output and is so much more expensive than labor? Explain. Note that it is unnecessary to solve for the actual levels of K and L as you did in the preceding question.

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