Apiece of laborsaving equipment has just come onto the market that mitsui electronics, ltd., could use to reduce costs in one of its plants in japan. relevant data relating to the equipment follow: purchase cost of the equipment $ 270,000 annual cost savings that will be provided by the equipment $ 60,000 life of the equipment 12 years

Suppose the production function in an economy is y = k0.5l0.5, where k is the amount of capital and l is the amount of labor. the economy begins with 64 units of capital and 16 units of labor. use a calculator and equations in the chapter to find a numerical answer to each of the following questions. what are the wage and the rental price of capital? the wage is equal to unit(s) of output and the rental price of capital is equal to unit(s) of output.