Problem 1. In the following figure, the price of labor is $10 per unit.

- What is the price per unit of capital?
- What is the marginal rate of technical substitution at point
*B*?

- What is the marginal rate of technical substitution at point
*A*? - What is the equation for the isocost curve at point
*B*?

- What is the equation for the isocost curve at point
*A*? - How many units of capital should a firm use in order to produce 300 units of output at the least cost?
- What is the minimum cost of producing 100 units of output?
- Suppose at Point A the optimal units of capital are 22. How many units of labor should a firm use in order to produce 300 units of output at the least cost?