Two part question

1a.A firm uses capital, K, to produce revenue and the MR from the 1st, 2nd, 3rd, 4th & 5th unit of K is $1.95, 1.55, 1.44, 1.32 and 1.25, respectively.If the interest rate is 49%, then the optimal K* for the firm to borrow is

1b. Once again, using the marginal revenue and marginal benefitfunctions given in the previous question, at an interest rate of 43%, in the market we have a case of

a) market equilibrium

b) excess demand for funds

c) excess supply of funds.