Company owns 25 jars and 1 worker can make 20 per hour. so, 1 hour labor = 20 jars.

same materials will be used. $9/hr for workers.

Option 1: jar production can be done at plant with workers

Option 2: rent a machine to make jars. 500 per hour.

cost of machine includes everything for $80/hour

1. what is the MPL?

2. what is the MPK?

3. recommended hours of labor and captial?

4. if jars were $.06 each would you think it worth it for production?

what is the production function for jars if L is 1 hour of labor and K is 1 hour?