Output (Number of Tests Per Hour) Machine Y Employed 171 197 476 123 162 181 72 102 129 2 3 Machine X Employed A medical testing lab uses two types of equipment to conduct tests for vitamin and mineral levels found in a patient's blood. Machine type X is leased for $106.50/hr. Machine type Y leased for $158.75/hour. The lab charges $3.50 per test. The production table for the lab is shown above. Use it to answer the following: a Beginning at (X=1, Y-1), calculate marginal product for X and marginal product for Y, MP x and MPY. b Test for a least cost combination of inputs. Which equipment type is more cost-efficient, X or Y? C. Beginning at (X-1, Y-1), calculate marginal revenue product for X and marginal revenue product for Y, MRPy and MRPY. d Test for a profit maximizing combination of inputs. Should the lab use more or less of equipment type X? Should the lab use more or less of equipment type Y? Equations: Px - Price the firm pays to employ input X PY - Price the firm pays to employ input Y MPy - the additional output associated with a one-unit increase in input X while holding input Y constant MPy = the additional output associated with a one-unit increase in input Y while holding input X constant MRPX = MPx*MR MRPy = MPy*MR MR = dTR/dQ Least cost combination of inputs PX/MPX - PY/MPY Profit Maximizing combination of inputs PX-MRPX and PY- MRPY For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Open Sans,S.. 10pt ABC