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Tobi also produces desks and the production function for cutting and jointing desks is Q = (K, L) = 1 10 K 2 3L 1

Tobi also produces desks and the production function for cutting and jointing desks is Q = (K, L) = 1 10 K 2 3L 1 3 , (1) where K stands for capital (machinery) rented and L represents the amount of labor. The marginal products of an input are: MPL = 1 30 K 2 3L 2 3 and MPK = 2 30 K 1 3L 1 3

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