a. Determine the impact of the increase in the price of agricul- ture on the rental on land and the rental on capital. videla odl bas ebenso ai b. Explain what has happened to the real rental on land and the real rental on capital.

Week 5 Chapter 5: Production Process and Costs   For this week read Chapter 5. Answer the following questions Question ·Bottom of Form XYZ restaurant sells donuts at $2 per unit. It uses capital (which it rents at $5 per hour under a contract for 5 and labor (which is paid a wage of $150 per hour of labor services). Complete the following table and use that information to answer the following questions. K L Q MPL APL VML FC VC TC 5 0 0 0           5 1 50 50 50 50 25 150 175 5 2 125 75 62.5 150 25 300 325 5 3 225 100 75 200 25 450 475 5 4 375 150 93.7 300 25 600 625 5 5 450 75 90 150 25 750 775 5 6 450 0 75 0 25 900 925 5 7 400 -50 57.14 -100 25 1050 1075 5 8 425 -75 53.12  -150 25 1200 1225 5 9 450 -25 50 -50 25 1350 1375 5 10 500 -50 50 -100 25 1500…

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6 A firm spends $12,000 per day producing a good. The wage per worker is $200 per day and rental rate 1/3 2/3 3." per unit of capit.al is $400 per day. The firm faces the production function y = The cost-minimizing level of capital is and the cost-minimizing level of labor is