RENTAL PRICE RENTAL PRICE K . SM D MRPM 0 Q QUANTITY 0 Q1. QUANTITY OF MACHINES OF MACHINES (a) 2 points: . One point is earned for the correct side-by-side graphs with a horizontal machine supply curve for John Lamb (S, D, PR. SM). . One point is earned for showing the equilibrium rental quantity of machines, Or, at the intersection of MRP and the horizontal supply curve. (b) 2 points: . One point is earned for stating that there will be no change to the marginal product curve for machine-hours. . One point is earned for explaining that the MRP curve for machine-hours will decrease (shift to the left) because the decrease in demand decreases the price of widgets. (c) 1 point: . One point is earned for correctly calculating the rental price of a machine: MP,/w = MP,/I = 28/14 =60/r. Therefore, I = $30