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Assignment:
Suppose that Mitsubishi is operating efficiently (i.e. minimizing their costs of production). To hire workers, suppose that Mitsubishi must pay the competitive hourly wage of ¥1,800. In addition, suppose that Mitsubishi determines that its marginal product of capital is 0.8 cars per hour and that capital is procured in a highly competitive market. Finally, suppose that the selling price of Mitsubishi's car is ¥1,200,000.
a. Determine the rate at which Mitsubishi can rent capital.
b. Determine Mitsubishi's marginal product of labour.
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