Mariam is opening a pizza joint. She plans to hire a chef to make pizzas at $10 an hour. She is also considering purchasing or leasing a convection oven. The purchase price of the oven is $500 and after three years it is worthless. The annual cost of leasing the oven is $150.

a. In which factor markets does Mariam operate?

b. What is the price of the capital equipment and rental rate of capital?