Number of Cars Output (passengers per year) D O 3.650 7,000 10,100 4 w 13,000 (a) What is the marginal product of capital for each additional car? (ist car:MPK=3,650; and car:MPK = 3350; ard car:MPK = 3,100; 4th car MPK=2,900) (b) If the average taxi fare for each passenger is equal to $20, what is the value of the marginal product to Red Hat from investing in a third car? (ard car: VMPK = $62,000) (c) If the annual user cost of a new car is $65,000, how many cars will Red Hat operate? (2 cars). (d) Suppose the annual physical depreciation rate on cars is 10 per- cent. If the purchase price of a new car is $500,000, what is the annual real interest rate at which Red Hat can borrow? (Approxi- mate calculation is fine.) (real rate = 3% or 0.03). (e) Other things equal, if the annual real interest rate falls to 2 per- cent, how many cars will Red Hat choose to operate? (3 cars)