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C. Whis OS use the production function Q-LOOKSLO 10 complete the following table Rate of Capital Input (K) See te 6 245 5 Sheil 347
C. Whis OS use the production function Q-LOOKSLO 10 complete the following table Rate of Capital Input (K) See te 6 245 5 Sheil 347 264 410 4 3 2 1 190 2 174 4 S 6 > Rate of Labor Input (L). ya Identify the threc important relations shown by the data from the above production table, h. Suppose that the wage rate is $135, the price of capital also is $135 per unit, and the firm currently is producing 190 units of output per period using one unit of capital and five units of labor. Is this an efficient resource combination? Explain. What would be a more efficient (not necessarily the best) combination? Why? (Hint: compare the marginal products of capital and labor at the initial input combination.)
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